ES Wedges, but Which Way Will It Break?
The ES continues to wedge, making this a rather tough trade at the moment. All year long, these consolidations have eventually rolled over and favored the bears.
However, there has been some bullish developments over the last few weeks, so longs are looking for some upside traction. The next 7 sessions won't make life any easier, I'm afraid.
In reality, keep it simple or go for a walk. Longs need the ES to clear 4200 on the upside (roughly last week's high) and bears need it to break last week's low near 4170.
Short of those two things, we can and likely will remain rangebound.
However, there has been some bullish developments over the last few weeks, so longs are looking for some upside traction. The next 7 sessions won't make life any easier, I'm afraid.
- June 9th is “roll day” for the futures, as we move to Sept. contracts from June.
June 10th is the CPI report, which has become the most important economic data point for traders.
June 14th is the PPI report.
June 15th we have retail sales, but more importantly the FOMC release and likely a 50 bps rate hike (there is currently a 10% chance of a 75 bps hike).
June 17th is quad-witch expiration.
In reality, keep it simple or go for a walk. Longs need the ES to clear 4200 on the upside (roughly last week's high) and bears need it to break last week's low near 4170.
Short of those two things, we can and likely will remain rangebound.
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