Recap
Last week ES executed a fantastic 130 point squeeze, with a long trade from 4413 that trailed to a stop out yesterday. The past three days have been a complex trading period, with ES trapping both longs and shorts. The question now is when the next trend leg will occur and where it will lead.
The Markets Overnight
🌏 Asia: Down a lot
🌍 Europe: Down a lot
🌎 US Index Futures: Down a lot
🛢 Crude Oil: Down a bit
💵 Dollar: Down slightly
🧐 Yields: Up a lot
🔮 Crypto: Up slightly
World Headline
Janet Yellen arrives in Beijing for high-level talks.
Key Structures
There are several core structures and levels to watch, from highest to lowest. These include: 4465-67 with 4460 just below, 4420-25, the 4377 level, and the large rising uptrend channel in white. These structures drive the broader trend and provide context to daily price action.
Support Levels
Supports are: 4480-82(major), 4474, 4467 (major), 4460, 4442-45 (major), 4433, 4420-25 (major), 4413 (major), 4408, 4394, 4387 (major), 4377-81 (major), 4368, 4350 (major), 4342, 4328-30 (major), 4315-20 (major), 4300, 4286, 4275 (major).
Resistance Levels
Resistances are: 4490 (major), 4502-4505 (major), 4516 (major), 4530, 4537-40 (major), 4550, 4560, 4566-70 (major), 4575, 4590 (major), 4605-4610 (major), 4625, 4635-40 (major).
Trading Plan
The trading plan includes watching for failed breakdowns for adds, bidding the 4480 and 4474 levels directly, and watching for a potential deep free fall to try longs at 4442-45 and 4420-25. If there's a breakout of the bull flag at 4491, avoid shorting. If ES is going to fail the breakout, look for a test of 4502 and rejection.
Wrap Up
After a massive 123 point trend, expect a period of complex and challenging trading. Flexibility is key. The general lean is that ES can fill out the bull flag more, then try the breakout to 4500+. A failure at 4467 is the first warning for bulls.
Disclosure: This is not financial advice and is for informational purposes only. Please consult a professional financial advisor before making any investment decisions.
Last week ES executed a fantastic 130 point squeeze, with a long trade from 4413 that trailed to a stop out yesterday. The past three days have been a complex trading period, with ES trapping both longs and shorts. The question now is when the next trend leg will occur and where it will lead.
The Markets Overnight
🌏 Asia: Down a lot
🌍 Europe: Down a lot
🌎 US Index Futures: Down a lot
🛢 Crude Oil: Down a bit
💵 Dollar: Down slightly
🧐 Yields: Up a lot
🔮 Crypto: Up slightly
World Headline
Janet Yellen arrives in Beijing for high-level talks.
Key Structures
There are several core structures and levels to watch, from highest to lowest. These include: 4465-67 with 4460 just below, 4420-25, the 4377 level, and the large rising uptrend channel in white. These structures drive the broader trend and provide context to daily price action.
Support Levels
Supports are: 4480-82(major), 4474, 4467 (major), 4460, 4442-45 (major), 4433, 4420-25 (major), 4413 (major), 4408, 4394, 4387 (major), 4377-81 (major), 4368, 4350 (major), 4342, 4328-30 (major), 4315-20 (major), 4300, 4286, 4275 (major).
Resistance Levels
Resistances are: 4490 (major), 4502-4505 (major), 4516 (major), 4530, 4537-40 (major), 4550, 4560, 4566-70 (major), 4575, 4590 (major), 4605-4610 (major), 4625, 4635-40 (major).
Trading Plan
The trading plan includes watching for failed breakdowns for adds, bidding the 4480 and 4474 levels directly, and watching for a potential deep free fall to try longs at 4442-45 and 4420-25. If there's a breakout of the bull flag at 4491, avoid shorting. If ES is going to fail the breakout, look for a test of 4502 and rejection.
Wrap Up
After a massive 123 point trend, expect a period of complex and challenging trading. Flexibility is key. The general lean is that ES can fill out the bull flag more, then try the breakout to 4500+. A failure at 4467 is the first warning for bulls.
Disclosure: This is not financial advice and is for informational purposes only. Please consult a professional financial advisor before making any investment decisions.
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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.
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.