Friday, February 09, 2007

Leg 1 & Currently in Leg 2 of Bull Break

I was totally "comatosed" last night...tried to catch some 40 winks at around 9pm, and you guessed it; I slept through the night! Well, I have to head out right now to get some chores done, so I will post the review in about 1 1/2 hours time. Drop by again.

The ES made a lower PRIME Low on the TREND Chart last night, effectively creating Leg 1 of Bull Break at 1446.75 (against last PRIME Support at 1447.50). I mentioned in yesterday's review that last PRIME Support was at 1450.50. This was correct at the point of writing, but however, PRICE failed in reaching PRIME Resistance, thus placing the other PRIME Support at 1447.50 as the LAST PRIME Support. Going into the close of the normal trading session PRICE has hit PRIME Resistance, thus creating LEG 2 of Bull Break. PRICE must not clear 1457.75 in order for this Leg 2 of Bull Break to be correct. 3 Legs of Bull Break consists of LOWER LOW, LOWER HIGH, then followed lastly by LOWER LOW again. We do have a slight indication of failure of Resistance in that a PRIME PPF has occurred at 1454.00 at the close. If PRICE, during Globex Session or at the start of the normal trading session starts to head down to clear 1451.00, then we are done with Leg 2, and are heading down for Leg 3. Leg 3 must break 1446.75.
Keep all these levels in mind. Remember, these levels are just for us to watch out for. The direction of PRICE is never cast in stone. PRICE can still turn up to invalidate Leg 1 of Bull Break altogether. We trade PRICE, not the indicators. The indicators are just there to help make the picture clearer.

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