So. Today was an interesting day. When I previously mentioned testing the 38.2% Fib retrace level, I totally didn't expect that it would break through it today...much less make it almost 50 points past.
The ES is 60 points away from the psychologically significant 4000 level. 4040 might provide some resistance and below that 4015. 4000 is inside a supply zone from July 28 between 4015 and 3995.
IF ES can get below that 3995 with volume, 3980/3968 would be the next target area. If this scenario plays out, then the idea that the Bear market was over and we are in a Bull market again is pretty much dead.
The last time the ES was at the 4016 to 3915 level, it ranged out for a few days. So that may play out again.
HOWEVER, with such a large move today, I wouldn't be surprised if we ranged out a bit the next couple of sessions and gravitated higher back to 4084/4111 area over a couple of days. Above that, there isn't a whole lot stopping ES from running right back up to 4200...could it be a thing?...maybe...this could just be one big pullback on a Bull Run...or it could be the end of a pullback from a Bear Market Rally...
The ES is 60 points away from the psychologically significant 4000 level. 4040 might provide some resistance and below that 4015. 4000 is inside a supply zone from July 28 between 4015 and 3995.
IF ES can get below that 3995 with volume, 3980/3968 would be the next target area. If this scenario plays out, then the idea that the Bear market was over and we are in a Bull market again is pretty much dead.
The last time the ES was at the 4016 to 3915 level, it ranged out for a few days. So that may play out again.
HOWEVER, with such a large move today, I wouldn't be surprised if we ranged out a bit the next couple of sessions and gravitated higher back to 4084/4111 area over a couple of days. Above that, there isn't a whole lot stopping ES from running right back up to 4200...could it be a thing?...maybe...this could just be one big pullback on a Bull Run...or it could be the end of a pullback from a Bear Market Rally...