S&P weekly consolidation in progress
Updated
At the end of last week, sellers confirmed weekly consolidation by closing below the previous week's low. From now on, bears have control over the price on the weekly timeframe. We should monitor the progression of weekly lows and highs to see when things start to shift, but until then, we should trust the sellers.
It is also notable that if we look at the futures chart (
ES1! ), we can see that buyers were unable to close above the previous day's high for the last 10 trading days. If buyers want to regain control, this will be their first objective.
Please note that the price is currently positioned near the previous month's low, which can provide an intermediate support level. If you’re planning to short the market, it is better to wait for a pullback or for a breakout with retest.
Finally, if weekly consolidation will convert into monthly consolidation it will be a major win for bears.
Disclaimer
I don't give trading or investing advice, just sharing my thoughts.
It is also notable that if we look at the futures chart (
ES1! ), we can see that buyers were unable to close above the previous day's high for the last 10 trading days. If buyers want to regain control, this will be their first objective.Please note that the price is currently positioned near the previous month's low, which can provide an intermediate support level. If you’re planning to short the market, it is better to wait for a pullback or for a breakout with retest.
Finally, if weekly consolidation will convert into monthly consolidation it will be a major win for bears.
Disclaimer
I don't give trading or investing advice, just sharing my thoughts.
Note
Tuesday. Reaction to monthly level was very weak. Not a good sign for buyers.Note
Last monthly low has been convincingly taken. Weekly consolidation has transformed into monthly. However, weekly downtrend is not yet confirmed.Next support level is near 496.5
Note
Today Bears tried to drive price down but they have not accomplished much. Price breached previous day low by a small margin but this move hasn't got follow-through. Price returned within Wednesday's range. This is a bullish signal.There are also signs of hourly trend starting to change. We might see bullish run tomorrow
Note
Overnight v-shape bounce on ES. Very unusual. Today will be an interesting dayNote
S&P was dragged down by Tech sector. At the same time there was startling strength in Financials and a few other sectors.
Disclaimer
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