I want to start with the 5 hour bars of the ES, 24 hour S&P fuguetures so that you can see just how significant this resistance area is. It will be no easy task to traverse the 40 points (1%) between the high of 3910 hit overnight, and the upper resistance band around 3950.
That doesn’t mean that it definitely won’t get through, but if it does, it would mean that the next target of the rally would be around 4075. If it fails, the downtrend would be confirmed.
Drilling down to the usual one hour view, you see the repulsion of the first attempt, and now, at 6 AM NY time, the testing of the bottom of the very short term hourly uptrend channel. 3875 is the critical sport area. If it holds, they’ll try again to break out later this morning. If it fails, then the next move would be a pullback to the next sport level around 3860. Breaking that would give the bears some impetus.
So we wait and see who wins this today.
To better understand the big picture right now so that you can take the correct action when the time is right, check out the following:
- Recession? What Recession? July 5, 2022
- For Swing Trades this Week, It’s Politics As Unusual July 5, 2022
- US Stock Market Celebrates the Froth of July July 4, 2022
- Gold Nears Triggers That Would Signal Brutal Outlook June 29, 2022
- Stocks Are Even More “Dover Sole” Versus Liquidity June 28, 2022
- We Knew QT Would Be Devastating, But You Ain’t Seen Nothing Yet June 21, 2022
- Dealers Assume the Position, as 75 BPs Coming Wednesday June 13, 2022
If you’re serious about the underlying forces of supply and demand that drive the markets, join me!
If you are a new visitor to the Stool, please register and join in! To post your observations and charts, and snide, but good-natured, comments, click here to register. Be sure to respond to the confirmation email which is sent instantly. If not in your inbox, check your spam filter.
