Bull Flags Breaking Up

There is a very strong rally setup coming into today, so I’ve decided to do an AM post this time, with the video below being the section on indices from my premarket video this morning.

The rally setup is the breaks up from bull flags on SPX, NDX, and RUT yesterday afternoon and this morning, and the double bottom on SPX that needs to break and convert double-bottom resistance at 2683 to fix a double-bottom target in the 2705-8 area. If that delivers, then all three have a decent shot at a retest of last week’s rally highs. Premarket Video from theartofchart.net – Update on ES, NQ, and TF:

The best setup, as happens regularly, is on RUT, with the low yesterday at rising support from the early April low, and a beautiful bull flag falling wedge that broke up at the open today. RUT 60min chart:

This is a nice setup but if it fails, SPX will likely retest yesterday’s low and may well then continue considerably lower. Bulls really need to deliver this morning if they want that retest as a fail could be ugly. Rising wedge support on RUT is in the 1557 area, and if that breaks this rally setup is likely broken too.

Written by:

Richard Chappell

Jack is a 20 year retail trading veteran and co-founder of The Art Of Chart. He started his blog at channelsandpatterns.net in 2010 and since has published tens of thousands of charts looking at hundreds of trading instruments across most tradeable markets, doing original work mainly in the areas of trendlines, patterns and divergences. At The Art Of Chart Jack has taught trading skills, technical analysis, and the discipline and trader psychology that allow those to be used effectively in trading.

24th Apr 2018

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