Here is the weekend look at the ES/SPY going into Oct 18-22. Last week was a bit of a roller coaster ride with the the ES falling back to 4318 and then reversing sharply after the Fed minutes were released. The ES finished the week very strong closing above the neutral zone and the 55 SMA. Price also broke the downward trend line and is showing relative strength to the NAS.
Price is now coming into the a AB=CD completion zone at the 4470 level. It also has to clear the Sept 27th pivot at 4472 if the bullish move is to continue. A pull back here into the 4400 level would be completely normal. Similar to NAS I would prefer to see a modest pull back before it pushes higher. That would setup nicely for bullish continuation. I will remain bullish on this unless price falls below the neutral at 4370.
The dotted black lines on the chart are support below and price targets above.
Notes:
Monday... Industrial production #s
Tuesday... Housing starts & NFLX earnings
Wednesday...TSLA earnings & Oil inventories
Thursday... Jobless claims
Fed heads talking all week.
**** The perspective of my analysis is that of a long biased trader. This means I am looking for uptrend confirmation before taking long trades. If the market is correction, at resistance or in a down trend I build cash and wait. I rarely short. ****
Price is now coming into the a AB=CD completion zone at the 4470 level. It also has to clear the Sept 27th pivot at 4472 if the bullish move is to continue. A pull back here into the 4400 level would be completely normal. Similar to NAS I would prefer to see a modest pull back before it pushes higher. That would setup nicely for bullish continuation. I will remain bullish on this unless price falls below the neutral at 4370.
The dotted black lines on the chart are support below and price targets above.
Notes:
Monday... Industrial production #s
Tuesday... Housing starts & NFLX earnings
Wednesday...TSLA earnings & Oil inventories
Thursday... Jobless claims
Fed heads talking all week.
**** The perspective of my analysis is that of a long biased trader. This means I am looking for uptrend confirmation before taking long trades. If the market is correction, at resistance or in a down trend I build cash and wait. I rarely short. ****
Comment:
ES gets more or less the same analysis at the NAS only it's relative strength is better. It also blasted higher ignoring fibs on the way but has already pushed through 886 fib and seems poised for move back to the ATH. I believe there were a lot of shorts covered this week and a lot of FOMO. The break out in BTC is adding fuel to the fire. We are due for a pull back or at least consolidation but I hesitate to predict price right now. Essentially as long as price stays above the 55 sma and the neutral zone I will stay bullish.
