#ES Futures Overview for the Week 06.12.22

We are back at the support where we found buyers before last months FOMC move on the 25th. Shorts covered, supply ran out and we were able to pick up a position and took it up over 4084 to sell. We spent time in tight range selling product and filling orders until we sold it and had no more buyers to take us higher. Question this week is will we see buyers step back in at this level to give us support again this time around or will we head lower to our next area where we can see some buyers step in who would put a position together. This week 3927-3940 is Key level to watch to get back to the upside but remember we have all this supply coming out from our consolidation above, we will most likely open under T+2 low of 4014 so could see more sellers and the buyers who were buying down here at the end of May and did not sell higher are probably not happy so unless we get a flush lower and come back in the range to trap shorts or don't consolidate a bit to build up supply to take higher from here then I will be cautious to the upside, will only trade long from Key Intraday Support areas or pull back trades. On the downside 3880-72 is the place to watch, that's our next Swing Low and entry into the lower daily range, if we do break that and accept in the 3980-3500 range then we have the low of 20th to take out and the next area I'm looking for support at is the middle of the range at 3731-3676, this is an area I thought we will visit last time around but we did not accept and came back out. We have market moving events Tuesday, Wednesday, Thursdays and might get some action Friday when Powell speaks in the morning. Overall should be an exciting week I think and can get some nice moves, lets see what we do in Globex tonight and then tomorrow we take a look at how we will trade it.

Comment:

Did not think we will hit the mid range target the first day this week... but here we are. Monitoring for continuation tomorrow towards 3676.50 and watching how we behave there.