7/11: Daily Recap, Outlook, and Trading Plan
Recap
Last week, ES experienced a deep late-day flush from the 4467-73 target area, landing at the 4420 level. Despite a 30-point rally, ES has largely remained stationary since late June. This period of range trading, between 4420-4490, is likely to continue for some time, providing a level-to-level day trader environment.
The Markets Overnight
🌏 Asia: Up strongly
🌍 Europe: Up
🌎 US Index Futures: Up
🛢 Crude Oil: Up
💵 Dollar: Down slightly
🧐 Yields: Down
🔮 Crypto: Down slightly
World Headline
Key Structures
The price action since Friday has been volatile, with a squeeze from 4430 to 4470s late Friday afternoon, followed by a rapid sell-off down to 4011, and then a rally back to 4440s. The big picture structures and levels to watch for now are 4485-95, 4460, 4420, 4382, and the large rising uptrend channel in white.
Support Levels
Supports are at: 4432-35 (major), 4423, 4418 (major), 4407, 4393 (major), 4380-83 (major), 4365 (major), 4350, 4344, 4328-33 (major) 4315-20 (major)
Resistance Levels
Resistances are: 4442 (major), 4451, 4461 (Major), 4468, 4484 (major), 4493 (major), 4511 (major), 4520, 4530-33 (major), 4543, 4553 (Major), 4575-4580 (major), 4593, 4605 (major)
Trading Plan
The bull case would involve continued base building in the 4420-40 range, then a breakout targeting 4461. The bear case would begin with the fail of 4418, followed by a period of acceptance and then a short after perhaps 4415.
Wrap Up
In summary, ES is currently in a basing period. As long as 4418 holds, we can expect continued basing in the 4420-40 range and then a breakout to 4461. However, a fail of 4418 would signal a bearish turn.
Disclosure: This is not financial advice and is for informational purposes only. Please consult a professional financial advisor before making any investment decisions.
Last week, ES experienced a deep late-day flush from the 4467-73 target area, landing at the 4420 level. Despite a 30-point rally, ES has largely remained stationary since late June. This period of range trading, between 4420-4490, is likely to continue for some time, providing a level-to-level day trader environment.
The Markets Overnight
🌏 Asia: Up strongly
🌍 Europe: Up
🌎 US Index Futures: Up
🛢 Crude Oil: Up
💵 Dollar: Down slightly
🧐 Yields: Down
🔮 Crypto: Down slightly
World Headline
- The Nasdaq 100 index will be rebalanced to reduce the dominance of the largest mega-cap stocks within it. The new weighting will be announced on July 14, taking effect for pre-market trading on July 24.
- Sweden will likely be admitted to NATO today at their annual summit.
- Asian equities higher as China announces loan relief for it’s troubled real estate sector.
Key Structures
The price action since Friday has been volatile, with a squeeze from 4430 to 4470s late Friday afternoon, followed by a rapid sell-off down to 4011, and then a rally back to 4440s. The big picture structures and levels to watch for now are 4485-95, 4460, 4420, 4382, and the large rising uptrend channel in white.
Support Levels
Supports are at: 4432-35 (major), 4423, 4418 (major), 4407, 4393 (major), 4380-83 (major), 4365 (major), 4350, 4344, 4328-33 (major) 4315-20 (major)
Resistance Levels
Resistances are: 4442 (major), 4451, 4461 (Major), 4468, 4484 (major), 4493 (major), 4511 (major), 4520, 4530-33 (major), 4543, 4553 (Major), 4575-4580 (major), 4593, 4605 (major)
Trading Plan
The bull case would involve continued base building in the 4420-40 range, then a breakout targeting 4461. The bear case would begin with the fail of 4418, followed by a period of acceptance and then a short after perhaps 4415.
Wrap Up
In summary, ES is currently in a basing period. As long as 4418 holds, we can expect continued basing in the 4420-40 range and then a breakout to 4461. However, a fail of 4418 would signal a bearish turn.
Disclosure: This is not financial advice and is for informational purposes only. Please consult a professional financial advisor before making any investment decisions.
