6/2: Daily Recap, Outlook, and Trading Plan
Recap
Yesterday's newsletter highlighted the ES' tendency to show early-week weakness followed by strong action on Thursdays and Fridays, a pattern that has become increasingly noticeable over the past eight weeks. This trend was validated by yesterday's market activity, which featured a substantial rally after a significant triangle pattern breakout last week, a back-test this week, and then the rally.
The Markets Overnight
🌏 Asia: Up strongly
🌍 Europe: Up strongly
🌎 US Index Futures: Up strongly
🛢 Crude Oil: Up strongly
💵 Dollar: Unchanged
🧐 Yields: Down
🔮 Crypto: Up
Key Structures
Two crucial structures to watch are the large blue broadening formation, with resistance currently at 4280, and the purple triangle, which has been back-tested throughout the week. The recent market activity, which consisted of a pattern breakout, back-test, and subsequent rally, is an excellent example of technical analysis and might mark the beginning of a new leg up to higher levels.
Support Levels
4221 (major), 4211 (major), 4205, 4193-89 (major), 4179 (major), 4162-66, 4149 (major), 4137, 4130 (major), 4124, 4118-20 (major), 4110, 4093-96 (major), 4086, and 4075-70 (major).
Resistance Levels
4232, 4240-43 (major), 4250-53, 4260 (major), 4273, 4282-85 (major), 4291, 4300 (major), 4315-20 (major), and 4328. The breakout point remains at the 4240-43 level, with potential shorting areas at 4260 and 4280-85.
Trading Plan
For today's trading plan, consider defending the 4221 and 4212 levels on dips, with the bull case targeting 4260 and then 4282-85. If the 4205 level is lost, this could indicate a return to choppy market conditions. For the bear case, a loss of 4205 would be the first warning, with potential short opportunities at 4203 or 4221.
💪 4240 - 43 is support
📈 Next minor is 4260, then 4267
📉 Pullback if 4240 fails is 4232, then 4221
Wrap Up
In conclusion, the market may be ready for an upward surge, focusing on basing above 4221 or 4212, and then setting up a breakout leg targeting 4260 and 4280-85. If the 4200 level is lost, we could see a return to choppy conditions. Keep an eye on the key structures and support and resistance levels to guide your trading decisions today.
Disclosure: This is not financial advice and is for informational purposes only. Please consult a professional financial advisor before making any investment decisions.
Yesterday's newsletter highlighted the ES' tendency to show early-week weakness followed by strong action on Thursdays and Fridays, a pattern that has become increasingly noticeable over the past eight weeks. This trend was validated by yesterday's market activity, which featured a substantial rally after a significant triangle pattern breakout last week, a back-test this week, and then the rally.
The Markets Overnight
🌏 Asia: Up strongly
🌍 Europe: Up strongly
🌎 US Index Futures: Up strongly
🛢 Crude Oil: Up strongly
💵 Dollar: Unchanged
🧐 Yields: Down
🔮 Crypto: Up
Key Structures
Two crucial structures to watch are the large blue broadening formation, with resistance currently at 4280, and the purple triangle, which has been back-tested throughout the week. The recent market activity, which consisted of a pattern breakout, back-test, and subsequent rally, is an excellent example of technical analysis and might mark the beginning of a new leg up to higher levels.
Support Levels
4221 (major), 4211 (major), 4205, 4193-89 (major), 4179 (major), 4162-66, 4149 (major), 4137, 4130 (major), 4124, 4118-20 (major), 4110, 4093-96 (major), 4086, and 4075-70 (major).
Resistance Levels
4232, 4240-43 (major), 4250-53, 4260 (major), 4273, 4282-85 (major), 4291, 4300 (major), 4315-20 (major), and 4328. The breakout point remains at the 4240-43 level, with potential shorting areas at 4260 and 4280-85.
Trading Plan
For today's trading plan, consider defending the 4221 and 4212 levels on dips, with the bull case targeting 4260 and then 4282-85. If the 4205 level is lost, this could indicate a return to choppy market conditions. For the bear case, a loss of 4205 would be the first warning, with potential short opportunities at 4203 or 4221.
💪 4240 - 43 is support
📈 Next minor is 4260, then 4267
📉 Pullback if 4240 fails is 4232, then 4221
Wrap Up
In conclusion, the market may be ready for an upward surge, focusing on basing above 4221 or 4212, and then setting up a breakout leg targeting 4260 and 4280-85. If the 4200 level is lost, we could see a return to choppy conditions. Keep an eye on the key structures and support and resistance levels to guide your trading decisions today.
Disclosure: This is not financial advice and is for informational purposes only. Please consult a professional financial advisor before making any investment decisions.
