ES/SPY Weekend Look(8/29) with levels

Last week the ES closed on Friday at 4505.50 after the JPOW gave the market the goldilocks scenario it was looking for. Tapering but not too soon (strengthening economy) and keeping rates low for the foreseeable future. Price grinded up to 4500 effortlessly and my expectations of a pullback did not materialize. My trading method involves identifying zones of interest to either enter trades or exit. The 4500 zone was an exit zone for me. I had Identified it as a target for price. I trimmed or closed my short term positions going into this area late last week. Heading into this week I reset my trade plan. I would expect at least some consolidation or pause in this area. So with that in mind I will stay patient and wait for price to confirm continuation from here. What I would prefer to see would be price to pull back or trade sideways for awhile and then break higher. The break higher would be confirmation of the bullish trend. I have re-drawn the neutral zone (tan box). If price stays above the neutral I remain bullish. If price falls below the neutral I will look for sideways to down price action. The trend line and ema cloud also serve as support. Any break of the trendline and ema cloud would signal a potential reversal to the down. DM me if you have any questions about my process.


Of note.

End of month Tuesday
Job data coming out this week
RSI Divergence on daily/weekly charts.

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Month ended strong. Nothing bearish about this price action so far. I have sat on my hands to begin the week and it has been hard. Lets see how the market reacts to the PMI data out tomorrow. Here is an updated chart.

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Same look for ES/SPY as NAS. Keep it simple.