7/6: Daily Recap, Outlook, and Trading Plan
Recap
Last week ES executed a fantastic 130 point squeeze, with a long trade from 4413 that trailed to a stop out yesterday. The past three days have been a complex trading period, with ES trapping both longs and shorts. The question now is when the next trend leg will occur and where it will lead.
The Markets Overnight
🌏 Asia: Down a lot
🌍 Europe: Down a lot
🌎 US Index Futures: Down a lot
🛢 Crude Oil: Down a bit
💵 Dollar: Down slightly
🧐 Yields: Up a lot
🔮 Crypto: Up slightly
World Headline
Janet Yellen arrives in Beijing for high-level talks.
Key Structures
There are several core structures and levels to watch, from highest to lowest. These include: 4465-67 with 4460 just below, 4420-25, the 4377 level, and the large rising uptrend channel in white. These structures drive the broader trend and provide context to daily price action.
Support Levels
Supports are: 4480-82(major), 4474, 4467 (major), 4460, 4442-45 (major), 4433, 4420-25 (major), 4413 (major), 4408, 4394, 4387 (major), 4377-81 (major), 4368, 4350 (major), 4342, 4328-30 (major), 4315-20 (major), 4300, 4286, 4275 (major).
Resistance Levels
Resistances are: 4490 (major), 4502-4505 (major), 4516 (major), 4530, 4537-40 (major), 4550, 4560, 4566-70 (major), 4575, 4590 (major), 4605-4610 (major), 4625, 4635-40 (major).
Trading Plan
The trading plan includes watching for failed breakdowns for adds, bidding the 4480 and 4474 levels directly, and watching for a potential deep free fall to try longs at 4442-45 and 4420-25. If there's a breakout of the bull flag at 4491, avoid shorting. If ES is going to fail the breakout, look for a test of 4502 and rejection.
Wrap Up
After a massive 123 point trend, expect a period of complex and challenging trading. Flexibility is key. The general lean is that ES can fill out the bull flag more, then try the breakout to 4500+. A failure at 4467 is the first warning for bulls.
Disclosure: This is not financial advice and is for informational purposes only. Please consult a professional financial advisor before making any investment decisions.
Last week ES executed a fantastic 130 point squeeze, with a long trade from 4413 that trailed to a stop out yesterday. The past three days have been a complex trading period, with ES trapping both longs and shorts. The question now is when the next trend leg will occur and where it will lead.
The Markets Overnight
🌏 Asia: Down a lot
🌍 Europe: Down a lot
🌎 US Index Futures: Down a lot
🛢 Crude Oil: Down a bit
💵 Dollar: Down slightly
🧐 Yields: Up a lot
🔮 Crypto: Up slightly
World Headline
Janet Yellen arrives in Beijing for high-level talks.
Key Structures
There are several core structures and levels to watch, from highest to lowest. These include: 4465-67 with 4460 just below, 4420-25, the 4377 level, and the large rising uptrend channel in white. These structures drive the broader trend and provide context to daily price action.
Support Levels
Supports are: 4480-82(major), 4474, 4467 (major), 4460, 4442-45 (major), 4433, 4420-25 (major), 4413 (major), 4408, 4394, 4387 (major), 4377-81 (major), 4368, 4350 (major), 4342, 4328-30 (major), 4315-20 (major), 4300, 4286, 4275 (major).
Resistance Levels
Resistances are: 4490 (major), 4502-4505 (major), 4516 (major), 4530, 4537-40 (major), 4550, 4560, 4566-70 (major), 4575, 4590 (major), 4605-4610 (major), 4625, 4635-40 (major).
Trading Plan
The trading plan includes watching for failed breakdowns for adds, bidding the 4480 and 4474 levels directly, and watching for a potential deep free fall to try longs at 4442-45 and 4420-25. If there's a breakout of the bull flag at 4491, avoid shorting. If ES is going to fail the breakout, look for a test of 4502 and rejection.
Wrap Up
After a massive 123 point trend, expect a period of complex and challenging trading. Flexibility is key. The general lean is that ES can fill out the bull flag more, then try the breakout to 4500+. A failure at 4467 is the first warning for bulls.
Disclosure: This is not financial advice and is for informational purposes only. Please consult a professional financial advisor before making any investment decisions.
