ES Four Hour Downside?Hmmmm. This doesn't look too good for ES if I'm being honest.
I am currently short as of this morning.
Esfutes
ES Bull Flagging into 4400ES Hourly Analysis - Bull Flagging into 4400
Price action was quite choppy today and was hard to read. When that happens, it's best to just step away and let price paint a picture for you over a period of time until the direction is clear. That is exactly what ES has started to do. On the 2-5 minute chart this looks like a mess, on the hourly, it's painted a beautiful picture. It is showing us that ES can not close 4400 and that any time it dips below, buyers keep stepping in.
4400 has become the battle field. We are basing/consolidating for a big move, which is expected due to this being a volatile week. While we are in a volatile week once earnings start to report, and with current world news, don't swing for the fences when entering trades. Keep it logical.
Supports: 4400, 4390, 4375.
Resistance: 4410, 4415, 4425.
ES - Bullish Analysis Quick ES Daily Analysis - Bullish/Neutral - Building 4 Hour Bull Flag into a Break and Retest
Thursday & Friday we saw a nice rejection off of 4430's backtest. Now we are at a recent break and retest level of 4340-4350 that was resistance for about 3 days from 28 Sep - 02 Oct. I'd say if we want to see more upside, this is where bulls need to hold in order to break above 4430's resistance. We are also sort of building a 4 hour bull flag into this level. We could very well dip back down into the weekly demand of 4265, but on Monday, depending on how ES's overnight acts, I'll be looking for longs in this area.
If we break below this retest zone, ES could put 4300 back in play for the shorts (from a daily analysis standpoint).
ATH Monthly closeSPY closed up 0.79% last Fri.
And at the ATH monthly close.
Augurs well for new price ATH.
ES futes trading up +19 handles as of now.
SPY suggested up open about 0.6%.
Most Mondays are green in the past 2 months.
Big cap tech has been pulling the other indices with it.
Strong earnings, in the face of pandemic, is exceptional.
Divergence continuesSPY closed up 0.73% yesterday.
It remembered Monday, so had to be up, especially on Corona vaccine positive spin.
Yesterday SPY kissed the back side of the broken support line.
Tech heavy QQQ ramped up 1.78% as vicious rotation continues.
ES futes are negative -12.25% as of now.
Banks keep trading very sluggishly.
More weakness in this group will pressure the markets down.
Mom squeeze continues to forecasts down/mixed markets.
First support is at 319.
Yellow flagSPY closed down 1.19% yesterday.
Tech mega cap index, QQQ. got slammed for 2.61%
MSFT, TSLA, NFLX earnings were good but they got sold anyway.
Frothy valuations I guess.
SPY RSI has diverged. Price made new high but RSI made lower high.
Short term RSI trendline is undercut.
Mom squeeze indicating caution due color change.
Expecting sideways movement with slight down bias in price.
ES futes are down 10 handles of now suggesting SPY down open ny 0.33%.
NR7 narrow range daySPY traced out a NR7 day yesterday and closed down 0.33%.
Lack of institutions participation meant a trendless day as locals took charge.
Advance-Decline line has made a new high.
Index usually follows the ADL trend.
Expecting higher prices in the weeks ahead.
ES futes are green as of now and SPY s open will be marginally green.
NR7 has compressed the markets further.
Explosive moves in near future happen after such events.
