8/1: Daily Recap, Outlook, and Trading Plan
Recap
ES continues its characteristic bull market cycle of multi-day squeezes followed by wide rangebound consolidation under resistance, as it has done since July 19th. This pattern is expected to continue until a breakout occurs.
Markets Overnight
🌏 Asia: Down a bit
🌍 Europe: Down
🌎 US Index Futures: Down
🛢 Crude Oil: Down
💵 Dollar: Up
🧐 Yields: Up strongly
🔮 Crypto: Down
World Headlines
Manufacturing data weak across China and Eurozone with Germany showing the steepest decline since the pandemic.
Key Structures
The triangle at 4609 remains the key structure, despite being somewhat "busted". This level has been tested six times in the last week and is proving to be a strong resistance. The ascending triangle at 4569-4571 is now support. The large rising uptrend channel connecting the March lows and the May lows is the primary medium term channel, with support currently at 4405 and resistance at 4650-55.
Support Levels
Supports are at 4608, 4602, 4594-92 (major), 4580, 4568-71 (major), 4556, 4549 (major), 4542, 4530 (major), 4515, 4500, 4488-92 (major), 4474, 4467, 4455-60 (major), 4442-45 (major).
Resistance Levels
Resistances are at 4608 (major), 4617, 4622 (major), 4631 (major), 4641, 4652-55 (major), 4664, 4670, 4681-84 (major), 4697, 4705 (major), 4714, 4722, 4740-45 (major), 4751, 4762 (major).
Trading Plan
The bull case is in play above 4592 and 4600, with a potential breakout to 4622 and then up to 4652-55. The bear case begins on the fail of 4592, with a potential short at 4589 for a move down the levels. If 4592 fails, it's time to short.
Wrap Up
ES continues to consolidate and build its base. As long as 4600 holds, with any spikes down to 4592 quickly bought, ES can continue to base for a push to 4622, then a final dip, then a breakout up the levels to 4631, then the 4655 magnet. If 4592 fails, it's time to short.
Disclosure: This is not financial advice and is for informational purposes only. Please consult a professional financial advisor before making any investment decisions.
ES continues its characteristic bull market cycle of multi-day squeezes followed by wide rangebound consolidation under resistance, as it has done since July 19th. This pattern is expected to continue until a breakout occurs.
Markets Overnight
🌏 Asia: Down a bit
🌍 Europe: Down
🌎 US Index Futures: Down
🛢 Crude Oil: Down
💵 Dollar: Up
🧐 Yields: Up strongly
🔮 Crypto: Down
World Headlines
Manufacturing data weak across China and Eurozone with Germany showing the steepest decline since the pandemic.
Key Structures
The triangle at 4609 remains the key structure, despite being somewhat "busted". This level has been tested six times in the last week and is proving to be a strong resistance. The ascending triangle at 4569-4571 is now support. The large rising uptrend channel connecting the March lows and the May lows is the primary medium term channel, with support currently at 4405 and resistance at 4650-55.
Support Levels
Supports are at 4608, 4602, 4594-92 (major), 4580, 4568-71 (major), 4556, 4549 (major), 4542, 4530 (major), 4515, 4500, 4488-92 (major), 4474, 4467, 4455-60 (major), 4442-45 (major).
Resistance Levels
Resistances are at 4608 (major), 4617, 4622 (major), 4631 (major), 4641, 4652-55 (major), 4664, 4670, 4681-84 (major), 4697, 4705 (major), 4714, 4722, 4740-45 (major), 4751, 4762 (major).
Trading Plan
The bull case is in play above 4592 and 4600, with a potential breakout to 4622 and then up to 4652-55. The bear case begins on the fail of 4592, with a potential short at 4589 for a move down the levels. If 4592 fails, it's time to short.
Wrap Up
ES continues to consolidate and build its base. As long as 4600 holds, with any spikes down to 4592 quickly bought, ES can continue to base for a push to 4622, then a final dip, then a breakout up the levels to 4631, then the 4655 magnet. If 4592 fails, it's time to short.
Disclosure: This is not financial advice and is for informational purposes only. Please consult a professional financial advisor before making any investment decisions.
