Nice rally on Friday to close out a volatile week.. ES was much stronger than the NAS and has a high chance for some bullish follow through especially if OIL continues it run. The ES is at key resistance right now at top of my neutral box. It has to clear the 618 level and then get through 3900 before the bull run can continue. 3912 is last week's high and has been a key level over the past few weeks. If price can reclaim that level a run to ATHs again is likely. Conversely if price rejects and falls back below the box it will be more sideways to down price movement. I'm guessing that stimulus has already been priced in so we will likely need some other catalyst to push this higher. A significant pull back in yields may be that catalyst so keep and eye on TLT, ZB & TNX.
If you find my charts helpful please hit the thumbs up button and help me get more views. Its free to do so and and keeps me motivated.
If you find my charts helpful please hit the thumbs up button and help me get more views. Its free to do so and and keeps me motivated.
Comment:
Definitely stronger than the NAS, but still stuck in the neutral zone. Big tech still make up a large percentage of the S&P so until names like AAPL and FB find a base the ES will have that anchor. OIL and financials are not enough. Key levels to the upside still in play. Above 3912 things get interesting.
Comment:
Coming into that key 3900 level. A break through could lead to very bullish follow through. Rejection = sideways to down some more.
Comment:
Finally broke the key 3912 level and exploded higher. I would expect a pull at the ATH so use caution especially if you are holding long CALLS. Premium on any CALLS with strikes above the ATH will evaporate if price starts to consolidate at the high.