Chart Analysis: Strong economic data drove stocks higher today with the E-Mini S&P 500 Futures ($ES_F) currently boasting an over 1% gain. Strong manufacturing growth, high consumer confidence and falling jobless claims are the fundamentals to blame for the positive price action today, however, do the technicals show signs of a bounce as well? Today’s NinjaTrader chart of the day shows how price action gave clues to today’s bounce and overall strength in the market. Traders can apply their favourite support and resistance lines using NinjaTrader’s vast armoury of drawing tools. The chart above shows both horizontal lines and the more advanced “Andrew’s Pitchfork” which was applied to the last rally. We can see how the current uptrend has fit nicely into the lower fork and found support at the confluence of 4 important technical factors which traders could have anticipated prior to the economic data. These four factors are the lower pitchfork support, 100 period simple moving average support, $1,400 psychological number and prior major market pivot high of $1,400. The convergence of these 4 major market support factors gave a strong case for traders to prepare for buying at this level. It will be interesting to see if this support area leads to a rally back to new highs for the year. Today’s chart can be created for free using NinjaTrader 7 and free end of day data from Kinetick.
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