6/1: Daily Recap, Outlook, and Trading Plan
Recap
Over the past few weeks, a pattern has emerged where Thursdays and Fridays see a violent squeeze, followed by a "hangover" state in the first few days of the next week. Both last week and this week so far have followed this pattern. We are currently in the sub-4200 congestion zone after yesterday's dip, having retraced about 60% of last week's rally.
The Markets
🌏 Asia: Mixed
🌍 Europe: Up
🌎 US Index Futures: Up slightly
🛢 Crude Oil: Up slightly
💵 Dollar: Down
🧐 Yields: Down
🔮 Crypto: Down a bit
Trading Plan
💪 4193 - 4185 is support
📈 Next minor is 4212, then 4221
📉 Pullback if 4185 fails is 4167, then 4145
Key Structures
The purple triangle backtest has a support level of 4147 and a resistance level of 4190. Resistance is now around 4221 on the small white channel. A new leg up to break the weekly high would begin if this area could be reclaimed.
Support Levels
4193 (major), 4185-88, 4176, 4167-70, 4160, 4146, 4137, 4125-28, 4112-15, 4099 (major), 4084, 4070-75, 4062, 4048 (major), 4036, 4030 (major)
Resistance Levels
4200-05 (major), 4213, 4221, 4230, 4240-43 (major), 4247, 4263, 4274
Trading Plan
Expect a more complex trading session today, with possibilities for both long and short setups. The 4190 triangle level was reclaimed at around 4194, offering some long exposure opportunities. However, trading in the 4185-90 zone requires skill and a strong real-time sense of action due to its messy and well-tested nature. An alternative is to test around 4185, then spike back up to 4192 for an entry. Potential knife catch long locations include the 4160 and 4146 levels if there is a leg down.
Wrap Up
Yesterday's session was complex and future sessions are likely to follow suit. After the easy trend last week, it's time to be strategic. Focus on reacting, with a loose lean as follows: as long as 4193-85 holds, a push back to 4213 and 4221, followed by another dip, is possible. If 4185 fails, a correction may be needed, possibly down to 4160.
Disclosure: This is not financial advice and is for informational purposes only. Please consult a professional financial advisor before making any investment decisions.
Over the past few weeks, a pattern has emerged where Thursdays and Fridays see a violent squeeze, followed by a "hangover" state in the first few days of the next week. Both last week and this week so far have followed this pattern. We are currently in the sub-4200 congestion zone after yesterday's dip, having retraced about 60% of last week's rally.
The Markets
🌏 Asia: Mixed
🌍 Europe: Up
🌎 US Index Futures: Up slightly
🛢 Crude Oil: Up slightly
💵 Dollar: Down
🧐 Yields: Down
🔮 Crypto: Down a bit
Trading Plan
💪 4193 - 4185 is support
📈 Next minor is 4212, then 4221
📉 Pullback if 4185 fails is 4167, then 4145
Key Structures
The purple triangle backtest has a support level of 4147 and a resistance level of 4190. Resistance is now around 4221 on the small white channel. A new leg up to break the weekly high would begin if this area could be reclaimed.
Support Levels
4193 (major), 4185-88, 4176, 4167-70, 4160, 4146, 4137, 4125-28, 4112-15, 4099 (major), 4084, 4070-75, 4062, 4048 (major), 4036, 4030 (major)
Resistance Levels
4200-05 (major), 4213, 4221, 4230, 4240-43 (major), 4247, 4263, 4274
Trading Plan
Expect a more complex trading session today, with possibilities for both long and short setups. The 4190 triangle level was reclaimed at around 4194, offering some long exposure opportunities. However, trading in the 4185-90 zone requires skill and a strong real-time sense of action due to its messy and well-tested nature. An alternative is to test around 4185, then spike back up to 4192 for an entry. Potential knife catch long locations include the 4160 and 4146 levels if there is a leg down.
Wrap Up
Yesterday's session was complex and future sessions are likely to follow suit. After the easy trend last week, it's time to be strategic. Focus on reacting, with a loose lean as follows: as long as 4193-85 holds, a push back to 4213 and 4221, followed by another dip, is possible. If 4185 fails, a correction may be needed, possibly down to 4160.
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.