Recap
August concluded with a remarkable five-day high streak in ES, marking about 150 points of total upside. Following this impressive rally, the market spent the rest of the week mainly in the range between 4540-4515. Friday's session was particularly messy, as predicted, due to the final session before a holiday weekend and NFP announcement on Friday morning.
Market Outlook: Neutral to Bullish
The Markets Overnight
🌏 Asia: Down
🌍 Europe: Mixed
🌎 US Index Futures: Down a bit
🛢 Crude Oil: Near unchanged
💵 Dollar: Up
🧐 Yields: Up
🔮 Crypto: Up slightly
World News
Slowing economic data out of Europe and China.
Key Structures
The key structures to watch for include 4537-42, which is now the most critical resistance level, and the yellow declining channel from the August high with 4493 backtest point. Another significant zone is 4466-70, which was crucial throughout August. The 4408-13 level has been a magnet all August and is also a significant bull/bear line.
Support Levels
The support levels to watch for are 4515 (major), 4505, 4498, 4492-87 (major), 4466-70 (major), 4460, 4453, 4448, 4440 (major), 4430, 4423, 4408-13 (major), 4390, 4383 (major), 4373, 4363, 4348-52 (major).
Resistance Levels
The resistance levels to watch for are 4523, 4527-4533, 4537-42 (major), 4557, 4570, 4580 (major), 4590-92 (major), 4597, 4607 (major), 4618, 4624, 4636 (major), 4652 (major), 4664, 4672, 4683-85 (major).
Trading Plan
The trading plan for today is dependent on two levels: 4515 and 4493-87. As long as these levels hold, the path is higher. However, if 4515 fails, we may see more correction and test 4492-87. It's crucial to give markets the time they need after large moves and not to prematurely look for trend continuation.
Wrap Up
After a significant four-day upward trend, the market is now in a phase of correction and consolidation. The key is to be patient and not to rush into trades. The current price action suggests that as long as the 4515 level holds, we can expect a continuation of the range between 4515 to 4537-42, followed by a potential breakout. However, if the 4515 level fails, we may need to brace for more correction and a test of the 4492-87 decision point.
Disclosure: This is not financial advice and is for informational purposes only. Please consult a professional financial advisor before making any investment decisions.
August concluded with a remarkable five-day high streak in ES, marking about 150 points of total upside. Following this impressive rally, the market spent the rest of the week mainly in the range between 4540-4515. Friday's session was particularly messy, as predicted, due to the final session before a holiday weekend and NFP announcement on Friday morning.
Market Outlook: Neutral to Bullish
The Markets Overnight
🌏 Asia: Down
🌍 Europe: Mixed
🌎 US Index Futures: Down a bit
🛢 Crude Oil: Near unchanged
💵 Dollar: Up
🧐 Yields: Up
🔮 Crypto: Up slightly
World News
Slowing economic data out of Europe and China.
Key Structures
The key structures to watch for include 4537-42, which is now the most critical resistance level, and the yellow declining channel from the August high with 4493 backtest point. Another significant zone is 4466-70, which was crucial throughout August. The 4408-13 level has been a magnet all August and is also a significant bull/bear line.
Support Levels
The support levels to watch for are 4515 (major), 4505, 4498, 4492-87 (major), 4466-70 (major), 4460, 4453, 4448, 4440 (major), 4430, 4423, 4408-13 (major), 4390, 4383 (major), 4373, 4363, 4348-52 (major).
Resistance Levels
The resistance levels to watch for are 4523, 4527-4533, 4537-42 (major), 4557, 4570, 4580 (major), 4590-92 (major), 4597, 4607 (major), 4618, 4624, 4636 (major), 4652 (major), 4664, 4672, 4683-85 (major).
Trading Plan
The trading plan for today is dependent on two levels: 4515 and 4493-87. As long as these levels hold, the path is higher. However, if 4515 fails, we may see more correction and test 4492-87. It's crucial to give markets the time they need after large moves and not to prematurely look for trend continuation.
Wrap Up
After a significant four-day upward trend, the market is now in a phase of correction and consolidation. The key is to be patient and not to rush into trades. The current price action suggests that as long as the 4515 level holds, we can expect a continuation of the range between 4515 to 4537-42, followed by a potential breakout. However, if the 4515 level fails, we may need to brace for more correction and a test of the 4492-87 decision point.
Disclosure: This is not financial advice and is for informational purposes only. Please consult a professional financial advisor before making any investment decisions.
