Market has been trading in a range during overnight session, after rallying to Fibonacci 1.272 level of Friday's RTH session.
A test of ETH Highs could set direction for the day.
Level to watch 3211 --- 3209
Just stating the very obvious, there is a noted shooting start candlestick pattern on the S&P500 futures, ES1!, weekly chart. This is typically followed by a down candle to confirm a turn. The candlestick of formed with a larger selling pressure during the week, despite attempts to proceed upwards. Buyers were crushed by sellers, and the week ended lower than when...
The last two days of the week saw a technical turn in the S&P500 futures, ES1!. It started with a surge rally that sputtered, followed by a bearish engulfing and a down candle to complete the three outside down candlestick pattern. This is supported with a MACD crossdown in a bearish divergence setup.
Appears to me meeting the 55EMA, the trailstop and widening...
I revised the size of the overlay and shifted it to the left a bit to make it fit better.
In any case, I expect the market to dip on Monday and possibly into Tuesday pre-market then rally on the Fed or stimulus or vaccine or something. I always say that the market doesn't trade on news, except real news like inflation, taxes (including tariffs), interest rates,...
After yesterday's sell off market could not put together a rally, sellers were in control.
Overnight session, market tried to rally but got rejected at Fibonacci 38.2% level.
Any test of yesterday's Close should provide direction for the day.
Level to watch 3225 --- 3223
Report to be aware:
US:New Home Sales
10:00 AM ET
ES at the 4 hour view.
The red line is the historical resistance. It stopped the ES back on June 05-09. It stopped the ES again this week. Had it not held, the next resistance would've been 3330 which was the February gap.
I was getting a little worried there since the resistance was starting to breakdown. However, it held in the end. I am not confident that...
🔸 China Macro Flows 🔸
The point of this configuration is that CNH is influencing the currency, equity and commodity board that can be seen in AUDUSD, NZDUSD, OIL, Gold and everything in-between...USD's cannot make any use of the Yuan devaluation and this has been a threat ever since Saudi unlocked the CNY oil contract.
For those tracking the Long-term Macro...
This is the ES at the 4 hour view. The historical resistance is starting to break down. I'm not too surprised actually.
There is a gap above at around 3330 from February that is calling to be filled. Furthermore, liquidity data suggests that liquidity is pretty strong now. So strong that it's drowning volatility runs as well as permabears' pride/egos.
This is...
All indicators are stuck in the middle, but this could be a bull flag as indicated by the overlay. NQ is oversold on MFI which usually leads to a pump and dump, especially with MSFT ad TSLA reporting AH.
It seems that yesterday's RTH session High has some strong resistance since it was rejected few times so far.
Any test of yesterday's HOD could set direction for the day.
Level to watch 3247 --- 3245
Reports to be aware:
US:Existing Home Sales
10:00 AM ET
US:EIA Petroleum Status Report
10:30 AM ET
Retail activity and strength is starting to transition towards excitement and complacency, when this happens Equities should be sold with confidence for a retest of the March lows.
📍 Here the following line appears the cleanest: 3240/50 => 2640/50 => 2060/70 and Sellers are not particularly favourable. The retail crowd are piling into longs and even some of the...
