6/8: Daily Recap, Outlook, and Trading Plan
Recap
In the past few days, we have seen a pattern of weakness from Monday to Wednesday and massive strength on Thursday and Friday. This cycle has played out for 7 of the last 9 weeks. If this pattern persists for another week, this week will be the last as next week is both CPI and FOMC, which should be one of the most volatile, complex weeks of 2023 and will see 50+ point setups for both bulls and bears.
The Markets Overnight
🌏 Asia: Mixed
🌍 Europe: Up slightly
🌎 US Index Futures: Up a bit
🛢 Crude Oil: Down
💵 Dollar: Up
🧐 Yields: Up a bit
🔮 Crypto: Up
🌏 World Headline
The Bank of Canada's sudden rate hike unsettles the markets and raises the likelihood that rates will be raised at the FOMC meeting next week due to strong consumer spending and persistent inflation.
Key Structures
Support Levels
4268, 4251-56 (major), 4243 (major), 4235, 4222 (major), 4213, 4200-05 (major), 4191 (major), 4182, 4175, 4167 (major)
Resistance Levels
4278-80 (major), 4288, 4304 (major), 4308, 4317 (major), 4325 (major), 4332, 4343 (major), 4356 (major), 4367, 4373, 4387 (major), 4395-4400 (major), 4411
📖 Trading Plan
📈 Bulls 4268 is support
Reclaim 4280 and consider longs at 4283. Level to level profit taking as always, but this could eventually make its way back to 4303, dip again, base more, then try a break up.
📉 Bears begin on the fail of 4268
Under 4280 bulls should be on guard. 4268 fail from here would then trigger downside to 4255.
Wrap Up
In summary, we are closing right at a decision point here, so it difficult to provide any lean. One could argue that we can sell down to perhaps 4255, 4243, then try a bounce out. If 4280 reclaims, we head up directly. Have a great trading day!
Disclosure: This is not financial advice and is for informational purposes only. Please consult a professional financial advisor before making any investment decisions.
In the past few days, we have seen a pattern of weakness from Monday to Wednesday and massive strength on Thursday and Friday. This cycle has played out for 7 of the last 9 weeks. If this pattern persists for another week, this week will be the last as next week is both CPI and FOMC, which should be one of the most volatile, complex weeks of 2023 and will see 50+ point setups for both bulls and bears.
The Markets Overnight
🌏 Asia: Mixed
🌍 Europe: Up slightly
🌎 US Index Futures: Up a bit
🛢 Crude Oil: Down
💵 Dollar: Up
🧐 Yields: Up a bit
🔮 Crypto: Up
🌏 World Headline
The Bank of Canada's sudden rate hike unsettles the markets and raises the likelihood that rates will be raised at the FOMC meeting next week due to strong consumer spending and persistent inflation.
Key Structures
- The 4243 level
- The blue broadening formation
- Resistance is now 4317-23, and support today will be 4250-55
- If this pattern breaks out, the next magnet becomes 4343
Support Levels
4268, 4251-56 (major), 4243 (major), 4235, 4222 (major), 4213, 4200-05 (major), 4191 (major), 4182, 4175, 4167 (major)
Resistance Levels
4278-80 (major), 4288, 4304 (major), 4308, 4317 (major), 4325 (major), 4332, 4343 (major), 4356 (major), 4367, 4373, 4387 (major), 4395-4400 (major), 4411
📖 Trading Plan
📈 Bulls 4268 is support
Reclaim 4280 and consider longs at 4283. Level to level profit taking as always, but this could eventually make its way back to 4303, dip again, base more, then try a break up.
📉 Bears begin on the fail of 4268
Under 4280 bulls should be on guard. 4268 fail from here would then trigger downside to 4255.
Wrap Up
In summary, we are closing right at a decision point here, so it difficult to provide any lean. One could argue that we can sell down to perhaps 4255, 4243, then try a bounce out. If 4280 reclaims, we head up directly. Have a great trading day!
Disclosure: This is not financial advice and is for informational purposes only. Please consult a professional financial advisor before making any investment decisions.
