7/7: Daily Recap, Outlook, and Trading Plan
Recap
Yesterday brought about the biggest dip in ES since April 23rd, which was then promptly bought up. A three-day flag pattern with 4464 support failed, triggering the first short in over a week. The selloff ended at the 4420-25 zone, which was the breakout origin point last Thursday. This represented a fantastic buy opportunity and the low of the day.
Key Structures
Several core big picture structures and levels were highlighted. The 4467-74 zone is the support of the multi-day bull flag. For bulls to regain full control, they must reclaim this zone. The 4420-25 zone is the breakout origin point and started the most recent 70 point squeeze higher. The 4377-82 level is the back-test of the perfect green channel structure connecting the February and December highs. If this fails, it would be the 2nd major support loss. The large rising uptrend channel in white connects the March lows and the May lows and is the primary medium term channel.
Support Levels
Supports are: 4441, 4430-31, 4420-24 (major), 4413 (major), 4402, 4394, 4378-82 (major) 4370, 4359, 4350-45 (major), 4338, 4328 (major), 4317-22 (major).
Resistance Levels
Resistances are: 4451 (major), 4462, 4467-73 (major), 4480 (major), 4487 (major), 4493, 4500-4503 (major), 4514, 4521 (major), 4532 (major), 4537, 4545 (major).
Trading Plan
The plan for today is to continue defending the 4420 level, which keeps a new leg up in play. If the 4420 level is tested again, it is likely still a strong buy. The bear case begins on the failure of 4420. In order to re-establish the move up and put bulls back in control, ES needs to reenter the structure that caused yesterday's selloff at 4467-73. The bull case is in play as long as the 4420 backtest keeps holding.
Wrap Up
Yesterday was an example of the power of simple technical analysis. The key task for bulls from here will be to continue defending 4420, which keeps a new leg up in play. The bull case is in play as long as the 4420 backtest keeps holding. If 4420 fails, we take another big leg down.
Disclosure: This is not financial advice and is for informational purposes only. Please consult a professional financial advisor before making any investment decisions.
Yesterday brought about the biggest dip in ES since April 23rd, which was then promptly bought up. A three-day flag pattern with 4464 support failed, triggering the first short in over a week. The selloff ended at the 4420-25 zone, which was the breakout origin point last Thursday. This represented a fantastic buy opportunity and the low of the day.
Key Structures
Several core big picture structures and levels were highlighted. The 4467-74 zone is the support of the multi-day bull flag. For bulls to regain full control, they must reclaim this zone. The 4420-25 zone is the breakout origin point and started the most recent 70 point squeeze higher. The 4377-82 level is the back-test of the perfect green channel structure connecting the February and December highs. If this fails, it would be the 2nd major support loss. The large rising uptrend channel in white connects the March lows and the May lows and is the primary medium term channel.
Support Levels
Supports are: 4441, 4430-31, 4420-24 (major), 4413 (major), 4402, 4394, 4378-82 (major) 4370, 4359, 4350-45 (major), 4338, 4328 (major), 4317-22 (major).
Resistance Levels
Resistances are: 4451 (major), 4462, 4467-73 (major), 4480 (major), 4487 (major), 4493, 4500-4503 (major), 4514, 4521 (major), 4532 (major), 4537, 4545 (major).
Trading Plan
The plan for today is to continue defending the 4420 level, which keeps a new leg up in play. If the 4420 level is tested again, it is likely still a strong buy. The bear case begins on the failure of 4420. In order to re-establish the move up and put bulls back in control, ES needs to reenter the structure that caused yesterday's selloff at 4467-73. The bull case is in play as long as the 4420 backtest keeps holding.
Wrap Up
Yesterday was an example of the power of simple technical analysis. The key task for bulls from here will be to continue defending 4420, which keeps a new leg up in play. The bull case is in play as long as the 4420 backtest keeps holding. If 4420 fails, we take another big leg down.
Disclosure: This is not financial advice and is for informational purposes only. Please consult a professional financial advisor before making any investment decisions.
