ES Weekend Look May (9-13)

Here is a quick look at the S&P going into the week of May 9-13. This is short write up as I have a busy schedule right now. The S&P rallied into and right after the FOMC meeting, but reversed hard the following day after traders fully digested the reality of the Fed no longer having their backs. The S&P closed down for the 5th consecutive week. On the positive side the S&P only finished the week down .22% and did not close below the Feb 22nd low.

Going into this week my bias remains bearish. The longer price continues to test the lows the higher the probability of a break down. If price decides to push up again the 9 ema and the bottom of the neutral remain resistance until broken. If price breaks down below last week's low expect a move to the 1.27 fib extension at 3969. Below that look for full compound corrective move to the 1.618 fib extension at 3800. Of note... a move down to 3800 would complete a 20% pull back putting the S&P into a bear market officially.

Good luck and happy trading.

Comment:

Keep an eye on these expanding trendlines as they can act as support and resistance.

Comment:

Similar to NAS this made another leg lower today. Reacted nicely to the first expanding trendline offering a quick 50 point move. Still watching the lower trend line and the 1.618 extension at 3800. I would expect a good sized bounce from the lower level if price gets there.

Comment:

Sunk to the lower trendline and reversed making a nice 130 bounce. Move up to the 9 ema is possible, but expect resistance at 4000. All zones of resistance have been met with heavy selling so I am cautious of holding too long or adding. Has not touched the 1.618 level yet and price has come just shy of the 20% pullback signifying a bear market.