💥 SPY and the DJI at Resistance BUT do we go Higher? 💫🙉
💬 The SPY (ES1!) and DJI (YM1!) are both approaching resistance according to their futures contracts charts (ES1! And YM1!). Do we get a pullback here, or does the Dow retest its previous top while the other indexes run? We think both moves are in the cards. Given that, let's look at some support and resistance levels to get a sense of what might come next.
Hit that 👍 button to show support for the content!
Help the community grow by giving us a follow 🐣
-----
-----
Summary:
The S&P and Dow Jones are both at resistance, we have yet to see a breakout. A breakout for either likely pulls the rest of the market up and then the main resistance becomes the Dow's R2 range at the previous high. A rejection here, and we have our eyes on S1 and S2. Splitting bids between these levels makes sense. Now, how much of this is going to be influenced by stimulus deals and dollar weakness? That is a great question, our main focus here is on resistance, but either of those items could make a big impact.
Resources:[/I]
nypost.com/2020/08/13/new-stimulus-checks-could-come-in-august-if-congress-acts-fast/
✨Drop a comment asking for an update, we do NEW setups every day!✨
Hit that 👍 button to show support for the content!
Help the community grow by giving us a follow 🐣
-----
- ES1! Support:
- S1: The range at the S/R flip and pivot point is a very obvious support level. We expect a reaction here if tested.
- S2: If this S/R flip and orderblock range is tested it is very likely to hold. This looks like the perfect entry if we do get a pullback. Fear should be high going into this major support.
ES1! Resistance: - R1: Our one and only resistance is the one we are at right now, the orderblock range at the previous high. A correction here doesn't really dampen the bull case assuming S1 or S2 holds. Despite this, it the ideal is for the bulls to break above R1 and treat it as support moving forward as shown by the bullish ABC on the chart.
YM1! Support: - S1: The S/R flip for the Dow isn't as pronounced as the S&P's, but we expect a reaction here regardless.
- S2: The orderblock and S/R cluster is the obvious support, just like it was for the S&P. Fear should be high going into this, but this is an ideal entry for bulls if we get a correction.
YM1! Resistance: - R1: If the Dow Jones can take out this resistance, or if the S&P can take out its resistance, then the bulls get a field day because there will be no resistance on any chart until the Dow's R2.
- R2: It would make a ton of sense for the market to see a pullback as the Dow finally retests the orderblock range at the all-time high. With that said, a breakout above R1 means lots of room to run to R2. A rejection here and we would then look for R1 to become support as illustrated by the bullish ABC on the chart.
-----
Summary:
The S&P and Dow Jones are both at resistance, we have yet to see a breakout. A breakout for either likely pulls the rest of the market up and then the main resistance becomes the Dow's R2 range at the previous high. A rejection here, and we have our eyes on S1 and S2. Splitting bids between these levels makes sense. Now, how much of this is going to be influenced by stimulus deals and dollar weakness? That is a great question, our main focus here is on resistance, but either of those items could make a big impact.
Resources:[/I]
nypost.com/2020/08/13/new-stimulus-checks-could-come-in-august-if-congress-acts-fast/
✨Drop a comment asking for an update, we do NEW setups every day!✨
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.