Yesterday, we gave a buy alert before market open and both of our targets were hit for $27 in profits (2068-2095).
“Enter long in any pullbacks with stop-loss below 2060 and target 1: 2088; target 2: 2095.” – ES-Mini: This Week’s Trading Plan
We believe that the level of danger now has increased and we are liquidating all long positions in ES-Mini and Market Stocks.
Looking at the daily chart, we see that price has more room to go up to the upper-bound of the channel.
ES Daily Chart – April 19, 2016
In fact, it is important for prices to hit the upper-bound of the channel and confirm this bullish rally but when we look at the 1h chart, there is a clear 5-waves up for this wave 5.
Our experience tells us to go flat because we will either have an extended inner wave (1h chart) or a uncompleted 5th wave (daily chart) according to the channeling method. Odds favor an immediate move to the upper-bound but we as traders should not always scalp for every dollar, especially in this market structure.
Do not forget what we wrote on April 14, 2016: SP 500 Index & ES Futures – What to Expect Now!