Recap ES opened the week by gapping up above Y-0 and filled the open gap above quickly. Retest of Y-0 confirm support and sent ES to test and clear Y+1 in 1 go. ES found resistance at longer term trend lines. Closed the week above Y+1 and above midpoint.
Outlook ES is developing a rising wedge visible on 30-min and hourly. This means ES can drift up to as high as Y+2 / B+2 area but it is not sustainable. When the steep support trend line from past 2 weeks is broken, ES will easily fall back down to B-0.
This is the second instalment on emini S&P gap behaviour. The first one is Outside Gap Behaviour, Now and Then.
Inside gaps are gaps that do not have the open price ...
S&P 500 Apr 27 to May 01 Outlook
Lawrence’s Comment
ES opened the week by gapping up above Y-0 and filled the open gap above quickly. Retest of Y-0 confirm support and sent ES to test and clear Y+1 in 1 go. ES found resistance at longer term trend lines. Closed the week above Y+1 and above midpoint.
Outlook
ES is developing a rising wedge visible on 30-min and hourly. This means ES can drift up to as high as Y+2 / B+2 area but it is not sustainable. When the steep support trend line from past 2 weeks is broken, ES will easily fall back down to B-0.
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