A few weeks ago I did a video on the potential for futures to retrace back to the ATR trailing stop on the weekly chart. Yesterday, the retracement completedand now the question is whether the monthly chart will also retrace.
In this video, I review the monthly, weekly and daily charts for the emini ES and Nasdaq charts. As I anticipated from the markets being overextended, traders began taking profits and pushed price down. The important question now is will this pullback continue? The monthly is approaching the area of being overbought, however, we may get a test for resistance before the downward moves continue. Traders will need to follow the test for resistance to see if this area holds price down and more downward movement will follow or can buyers break through this area.