5/31: Daily Recap, Outlook, and Trading Plan
Recap
ES has been in a broad dip-buy regime since October. Today marked the first post-rally pullback, and the ES had a very choppy/corrective session. We are in a confusing post-rally consolidation phase, with a new consolidation range between 4206 and 4243.
The Markets Overnight
🌏 Asia: Down
🌍 Europe: Down
🌎 US Index Futures: Down
🛢 Crude Oil: Down a lot
💵 Dollar: Up a bit
🧐 Yields: Down
🔮 Crypto: Down
Key Structures
The purple triangle is one of the key structures I'm keeping an eye on, with a clear support line extending from May 10 through May 24. Support is currently at 4145. The sizable blue broadening formation is also a key structure to watch. Generally, these patterns tend to "fill out” over time, so when support of this pattern tests, resistance tends to become a magnet.
Support Levels
First support down is at 4212, followed by 4206 and major support at 4193-89. Further support levels include 4165, 4145, and 4113-4116.
Resistance Levels
Major resistance levels include 4221-24, 4243, 4273-77 (blue broadening formation resistance), and 4292. Additional resistance exists at 4313 and 4342.
Trading Plan
Consider going long at 4213, provided it holds above 4212. Initially, aim for 4243, but be cautious chasing in a choppy range. If the 4221-24 level is reclaimed, it would be bullish. However, if 4213 fails, it could signal a bearish case. If we drop below 4213, only consider going short if there's a significant bounce and hours of acceptance at given levels.
Wrap Up
Following the recent rally, we are now in a period of choppy consolidation. Ideally, we can hold 4213, potentially backtest 4194-89, and continue the basing process by bouncing to 4243. If 4194-89 fails, we may start our journey back to triangle support, which would be a warning for bulls. Remember to stick to the three fundamental principles: do not overtrade, manage trades using a standard procedure, and pay attention to failed breakdowns and breakouts when looking for entry points.
Disclosure: This is not financial advice and is for informational purposes only. Please consult a professional financial advisor before making any investment decisions.
ES has been in a broad dip-buy regime since October. Today marked the first post-rally pullback, and the ES had a very choppy/corrective session. We are in a confusing post-rally consolidation phase, with a new consolidation range between 4206 and 4243.
The Markets Overnight
🌏 Asia: Down
🌍 Europe: Down
🌎 US Index Futures: Down
🛢 Crude Oil: Down a lot
💵 Dollar: Up a bit
🧐 Yields: Down
🔮 Crypto: Down
Key Structures
The purple triangle is one of the key structures I'm keeping an eye on, with a clear support line extending from May 10 through May 24. Support is currently at 4145. The sizable blue broadening formation is also a key structure to watch. Generally, these patterns tend to "fill out” over time, so when support of this pattern tests, resistance tends to become a magnet.
Support Levels
First support down is at 4212, followed by 4206 and major support at 4193-89. Further support levels include 4165, 4145, and 4113-4116.
Resistance Levels
Major resistance levels include 4221-24, 4243, 4273-77 (blue broadening formation resistance), and 4292. Additional resistance exists at 4313 and 4342.
Trading Plan
Consider going long at 4213, provided it holds above 4212. Initially, aim for 4243, but be cautious chasing in a choppy range. If the 4221-24 level is reclaimed, it would be bullish. However, if 4213 fails, it could signal a bearish case. If we drop below 4213, only consider going short if there's a significant bounce and hours of acceptance at given levels.
Wrap Up
Following the recent rally, we are now in a period of choppy consolidation. Ideally, we can hold 4213, potentially backtest 4194-89, and continue the basing process by bouncing to 4243. If 4194-89 fails, we may start our journey back to triangle support, which would be a warning for bulls. Remember to stick to the three fundamental principles: do not overtrade, manage trades using a standard procedure, and pay attention to failed breakdowns and breakouts when looking for entry points.
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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