Recap
The week started with a squeeze due to ES back-testing the crucial 4493 level from its July 12th breakout. This led to a technically perfect 48 point rally on Monday. However, markets are known to be unpredictable and often trap players in a cycle of relentless dip buying and selling. Tuesday saw a sell-off from Monday's highs down to 4480s, followed by a hard squeeze in the afternoon. The squeeze started once again from the 4487-93 zone.
Markets Overnight
🌏 Asia: Mixed
🌍 Europe: Up
🌎 US Index Futures: Up a bit
🛢 Crude Oil: Up
💵 Dollar: Down slightly
🧐 Yields: Mixed
🔮 Crypto: Up
World Headlines
White House will announce today new investment restrictions in advanced technology industries such as advanced semiconductors, artificial intelligence and quantum computing.
Key Structures
Several key structures are in place, including a declining channel from the July 27th high, which is technically a bull flag. Support for this is now at 4493-87, and resistance will be at 4581-85. Other noteworthy levels include 4509, which has been a dominant magnet this week, and 4493-87, which represents major June/July resistance.
Support Levels
The support levels to watch are: 4515, 4505-09 (major), 4493-88 (major), 4475, 4464-66, 4450-53 (major), 4443 (major), 4432, 4420-23 (major), 4411, 4400 (major), 4387, 4370, 4362 (major), 4351, 4345 (major).
Resistance Levels
Resistances are: 4532 (major), 4540, 4548 (major), 4558, 4574, 4581-85 (major), 4597, 4607 (major), 4614, 4625, 4637-40 (major), 4655, 4665, 4674 (major), 4687 (major).
Trading Plan
Bulls need to hold the 4493 backtest, and 4509 should continue to hold as well. If 4509 fails, it could lead to a trip back down to 4493-88. For bears, 4509-05 needs to fail. In terms of adding on strength, a nice bull flag overnight below 4520 and above 4509 could lead to a push to 4530+.
Wrap Up
Bulls defended an important support at 4493, and now need to keep running this. The general lean is for bulls to continue defending 4509, then run to 4530 or so, dip, then 4548. If 4509 fails, it's back down the levels again.
The week started with a squeeze due to ES back-testing the crucial 4493 level from its July 12th breakout. This led to a technically perfect 48 point rally on Monday. However, markets are known to be unpredictable and often trap players in a cycle of relentless dip buying and selling. Tuesday saw a sell-off from Monday's highs down to 4480s, followed by a hard squeeze in the afternoon. The squeeze started once again from the 4487-93 zone.
Markets Overnight
🌏 Asia: Mixed
🌍 Europe: Up
🌎 US Index Futures: Up a bit
🛢 Crude Oil: Up
💵 Dollar: Down slightly
🧐 Yields: Mixed
🔮 Crypto: Up
World Headlines
White House will announce today new investment restrictions in advanced technology industries such as advanced semiconductors, artificial intelligence and quantum computing.
Key Structures
Several key structures are in place, including a declining channel from the July 27th high, which is technically a bull flag. Support for this is now at 4493-87, and resistance will be at 4581-85. Other noteworthy levels include 4509, which has been a dominant magnet this week, and 4493-87, which represents major June/July resistance.
Support Levels
The support levels to watch are: 4515, 4505-09 (major), 4493-88 (major), 4475, 4464-66, 4450-53 (major), 4443 (major), 4432, 4420-23 (major), 4411, 4400 (major), 4387, 4370, 4362 (major), 4351, 4345 (major).
Resistance Levels
Resistances are: 4532 (major), 4540, 4548 (major), 4558, 4574, 4581-85 (major), 4597, 4607 (major), 4614, 4625, 4637-40 (major), 4655, 4665, 4674 (major), 4687 (major).
Trading Plan
Bulls need to hold the 4493 backtest, and 4509 should continue to hold as well. If 4509 fails, it could lead to a trip back down to 4493-88. For bears, 4509-05 needs to fail. In terms of adding on strength, a nice bull flag overnight below 4520 and above 4509 could lead to a push to 4530+.
Wrap Up
Bulls defended an important support at 4493, and now need to keep running this. The general lean is for bulls to continue defending 4509, then run to 4530 or so, dip, then 4548. If 4509 fails, it's back down the levels again.
