As all the "bear market rally" talking heads continue to try to convince us that whatever they say has value, there is one thing that tells us for sure exactly what is going on. Price Action.
Today, 10/31/2022 was a rough day on the market, but following the price action rules there were still good opportunities to be found.
There is some news and a few continued earnings coming out that will have affect on the markets this week
On the daily ES chart we can see ES is between the 23.06% and 38.2% Fib retrace levels. Also, looking at price action you can see that we look to be on the first leg of a 2 legged pullback but it may still continue the up trend. There may be some more upside to be seen.
The 38.2 level is sitting just under 4000.00 which has proven to be a very tough resistance point several times this year.
We have demand at 3878 and there is very little resistance until the supply zone at 3925. Just under that is the October High around 3924. These areas were tough resistance the last several times price encountered them.
To the downside once we clear the demand zone at 3878/3869 area, there is very little resistance down to 3808 which just happens to be the 23.6 Fib level. Around 3820 is the bottom of the up trend trend line. That would probably be a good place to start protecting any short positions.
Today, 10/31/2022 was a rough day on the market, but following the price action rules there were still good opportunities to be found.
There is some news and a few continued earnings coming out that will have affect on the markets this week
On the daily ES chart we can see ES is between the 23.06% and 38.2% Fib retrace levels. Also, looking at price action you can see that we look to be on the first leg of a 2 legged pullback but it may still continue the up trend. There may be some more upside to be seen.
The 38.2 level is sitting just under 4000.00 which has proven to be a very tough resistance point several times this year.
We have demand at 3878 and there is very little resistance until the supply zone at 3925. Just under that is the October High around 3924. These areas were tough resistance the last several times price encountered them.
To the downside once we clear the demand zone at 3878/3869 area, there is very little resistance down to 3808 which just happens to be the 23.6 Fib level. Around 3820 is the bottom of the up trend trend line. That would probably be a good place to start protecting any short positions.