Riding the Bull: Are We Set to Rally Higher?
SPDR S&P 500 FUTURES 
ESM2023 & 
SPY ETF - Evening Market Update - 10/18/23
Today's Recap
We saw a remarkable movement in ES over the past week. It was technical analysis at its finest: a 10-day tight range was followed by a breakout, just as the underlying trend suggested. As per historical trends, these range breakouts can lead to sustained rallies.
Key Structures
Several key structures have emerged that are worth watching:
The Week-Long Triangle Structure: This structure triggered the recent breakout. The market dynamics can be summarized as follows: bulls control above it, and bears control below it. The back-test level is now 4140-42.
The Purple Uptrend Channel: This structure, connecting the May 4th low and this week's low, is a crucial support area at around 4140-42. Bulls will want to hold this structure.
The Blue and White Broadening Formation: This structure has been a focus in our discussions. The white broadening formation resistance, at around 4197, was the target for weeks, and it broke out late today.
Support Levels
As long as 4147 holds, we continue our upward trajectory.
The 4140-42 area, derived from the triangle structure and the purple uptrend channel, is an obvious structure bulls want to hold.
4197, the previous resistance, has now turned into a support level.
4197-95 (major), 4182-85 (major), 4175, 4168, 4156 (major), 4140-42 (major - backtests the triangle breakout), 4135, 4126 (major - triangle support), 4114, 4106, 4092-95 (major - broadening formation support).
Resistance Levels
Initial resistance was at 4192, acting as a magnet, as previously identified.
According to the blue broadening formation, the next major resistance level is now at 4242.
4212, 4221 (major), 4235, 4243 (major), 4249, 4263 (major), 4270-72, 4277 (major), 4296, 4306 (major).
Trading Plan for Tomorrow
The plan for tomorrow is straightforward:
If the market remains above the key structures (4140-42), we should anticipate a continued upward trend toward the resistance at 4242.
However, if the market dips below these structures, it could signal a shift in control to bears.
Wrap Up
Stay patient and adhere to your trading plan. Follow the key structures, resistance, and support levels closely.
Disclosure: This is not financial advice and is for informational purposes only. Please consult a professional financial advisor before making any investment decisions.
ESM2023 & SPY ETF - Evening Market Update - 10/18/23Today's Recap
We saw a remarkable movement in ES over the past week. It was technical analysis at its finest: a 10-day tight range was followed by a breakout, just as the underlying trend suggested. As per historical trends, these range breakouts can lead to sustained rallies.
Key Structures
Several key structures have emerged that are worth watching:
The Week-Long Triangle Structure: This structure triggered the recent breakout. The market dynamics can be summarized as follows: bulls control above it, and bears control below it. The back-test level is now 4140-42.
The Purple Uptrend Channel: This structure, connecting the May 4th low and this week's low, is a crucial support area at around 4140-42. Bulls will want to hold this structure.
The Blue and White Broadening Formation: This structure has been a focus in our discussions. The white broadening formation resistance, at around 4197, was the target for weeks, and it broke out late today.
Support Levels
As long as 4147 holds, we continue our upward trajectory.
The 4140-42 area, derived from the triangle structure and the purple uptrend channel, is an obvious structure bulls want to hold.
4197, the previous resistance, has now turned into a support level.
4197-95 (major), 4182-85 (major), 4175, 4168, 4156 (major), 4140-42 (major - backtests the triangle breakout), 4135, 4126 (major - triangle support), 4114, 4106, 4092-95 (major - broadening formation support).
Resistance Levels
Initial resistance was at 4192, acting as a magnet, as previously identified.
According to the blue broadening formation, the next major resistance level is now at 4242.
4212, 4221 (major), 4235, 4243 (major), 4249, 4263 (major), 4270-72, 4277 (major), 4296, 4306 (major).
Trading Plan for Tomorrow
The plan for tomorrow is straightforward:
If the market remains above the key structures (4140-42), we should anticipate a continued upward trend toward the resistance at 4242.
However, if the market dips below these structures, it could signal a shift in control to bears.
Wrap Up
Stay patient and adhere to your trading plan. Follow the key structures, resistance, and support levels closely.
Disclosure: This is not financial advice and is for informational purposes only. Please consult a professional financial advisor before making any investment decisions.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.