This report is generated by AI. I have reviewed it for general accuracy, but it is not my output. However, the chart is strictly authored by me and the AI analysis is based on the chart and other input from my proprietary reports. For my latest market views, visit Liquiditytrader.com
Today’s pre-market ES hourly chart is a study in technical intensity. The market is testing critical levels, and the interplay between key support and resistance zones will determine the next directional move. Here’s the latest chart at 7:15 AM New York time:
Analysis:
- Structural Overview:
The chart shows equal vertical width channels that have been defining the market’s short-term trading range. The upper green zones represent uptrend channels with resistance clusters near 6085-6095, while the lower red zones show downtrend channels and highlight key support levels around 6040 and 6000. - Momentum Signals:
- The MACD and True Strength Index indicate waning bullish momentum, though they haven’t yet flipped decisively bearish.
- Fisher Transform suggests the market is at an inflection point—teetering between continued strength or a breakdown.
- Resistance and Support Dynamics:
- Resistance: The market failed to sustain a breakout above the 6095 level overnight, signaling that sellers remain active at these higher levels. A sustained break above this zone could open the door to a move toward 6125.
- Support: The 6040 level will be critical in the event of further selling pressure. A break below this could lead to a test of the psychological 6000 mark, where deeper support lies.
- Market Context:
Beneath the surface, we continue to see a bifurcated market. While large-cap leaders have kept indices afloat, many individual stocks remain in bearish trends. This divergence underscores the importance of a disciplined, selective approach to trading in this environment.
Conclusion:
The market remains in a delicate balance, with bullish structure intact but increasingly vulnerable. Professionals should monitor key levels closely and prepare for potential volatility. If the bulls can clear resistance, we may see further strength, but a break of support would confirm a broader downtrend.
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