Bear Flags and SPX Annual Pivot

In the video below before the open this morning I looked first at the clear bear flag rally patterns developed on ES, NQ, RTY, DAX and ESTX50, then SPX, NDX and RUT. That’s a lot of bear flags and while these don’t always break down, they usually do and the odds favor that again here. None of these have broken down yet apart from a slight break on ES rising wedge support, and if we see confirmation with a break and conversion of the ES weekly pivot at 2572.50 to resistance today or tomorrow then I’d expect all of these bear flags to start breaking down with likely minimum targets at a retest of last month’s low. Full Premarket Video from theartofchart.net – Updates on ES, NQ, RTY, DAX, ESTX50, SPX, NDX, RUT, CL, NG, GC, SI, HG, ZB, KC, SB, CC, ZW, ZC, ZS, DX, EURUSD, USDJPY, USDCAD & AUDUSD:

On the upside the SPX high last week was just under the 2019 annual pivot at 2598. I’d note that the February low last year was just a few handles below the 2018 annual pivot, so it’s a good area for a rally high. We could still see a marginal higher high but I’m not expecting it to be broken by much. SPX daily chart:

On the SPX chart the bear flag pattern is a rising wedge and wedge support is now in the 2544 area. Watching a clear break there for downside break confirmation, slightly below the monthly pivot at 2551. SPX 15min chart:

We’ve introduced daily coverage of DAX and Stoxx 50 futures on a trial basis to assess interest in these and we might introduce Nikkei coverage later on the same basis. If you’re interested the you can get a 30 day free trial to our non-options services at the bottom of our subscriptions page.

About the Author

shjackcharts
I Chart Therefore I Am

Leave a Reply