Morning Notes 07/18/19-Gary
Trading Environment-Short Term: Current Environment-Bearish
Hi Everyone, (Sorry for the lack of posts and delay in these morning notes. I have been extremely busy and actually taking some days off)
Futures have been bouncing around all morning. Buyers did step in at the 50% Fib line and technicals are oversold on the 60 minute /es. If we bounce some today, it would make sense, but I am thinking bears will be waiting at 2994 (/ES) That is where the 50/200 are crossing and if the bears fail to hold the bulls down there, new highs or a test of the highs is likely. The pattern on this Fed Induced rally has been push the tape higher in overnight trade, sell when the bell sounds and buy the last hour of trading. The pullbacks have been typically 50 points which is almost exactly where the bulls stepped in overnight and pushed the /es up some 10 points.
What does all of that mean? If the bulls push the /es through the 2994, most likely it will be business as usual and the pattern remains in tact. If the bulls fail to push above 2994 and the bears take out the 2970/2957 support zone, the pattern has changed. That would open the door for a deeper drop, most likely down to the 2915 area. I am still looking at the 2964 support on the spx as the line the bears need to push through. That would open the door for a move down to the 2912 on the spx. I am open minded for today as far as direction. I still believe lower would make more sense here, but Mr. Market doesn't care what I think.
Today range for the spx 2989 high and 2981 low. A break of 2989 the SPX should try for the spx should try for 2994/2998. A push below 2981 we could see 2972/2964. G-
SPX CASH 60 minute Technicals
Stochastics: Neutral-Coming Off Overbought
Divergences- Bearish Divergences
Resistance Levels: R1-2989 R2-2994-17 R3 2998
Support Levels: S1-2981 S2-2972 S3 2964
Trending Pivots: Lower
Trading Environment-Short Term: Current Environment-Bearish
Hi Everyone, (Sorry for the lack of posts and delay in these morning notes. I have been extremely busy and actually taking some days off)
Futures have been bouncing around all morning. Buyers did step in at the 50% Fib line and technicals are oversold on the 60 minute /es. If we bounce some today, it would make sense, but I am thinking bears will be waiting at 2994 (/ES) That is where the 50/200 are crossing and if the bears fail to hold the bulls down there, new highs or a test of the highs is likely. The pattern on this Fed Induced rally has been push the tape higher in overnight trade, sell when the bell sounds and buy the last hour of trading. The pullbacks have been typically 50 points which is almost exactly where the bulls stepped in overnight and pushed the /es up some 10 points.
What does all of that mean? If the bulls push the /es through the 2994, most likely it will be business as usual and the pattern remains in tact. If the bulls fail to push above 2994 and the bears take out the 2970/2957 support zone, the pattern has changed. That would open the door for a deeper drop, most likely down to the 2915 area. I am still looking at the 2964 support on the spx as the line the bears need to push through. That would open the door for a move down to the 2912 on the spx. I am open minded for today as far as direction. I still believe lower would make more sense here, but Mr. Market doesn't care what I think.
Today range for the spx 2989 high and 2981 low. A break of 2989 the SPX should try for the spx should try for 2994/2998. A push below 2981 we could see 2972/2964. G-
SPX CASH 60 minute Technicals
Stochastics: Neutral-Coming Off Overbought
Divergences- Bearish Divergences
Resistance Levels: R1-2989 R2-2994-17 R3 2998
Support Levels: S1-2981 S2-2972 S3 2964
Trending Pivots: Lower