ES Week of Nov 8 – 12 Outlook
Recap of last week
Multiple upside expansion targets based on STOPD are tagged – all done right after US mid term election is completed and that Fed announced its QE2.
These upside targets are based on monthly, quarterly, and yearly resolution. It implies a pause or a pullback is very likely.
Next week outlook
On weekly basis, should 1200 failed to hold up as the support price level for ES, the nearest target is the 6th unclosed gap at around 1165. The next gap below is at 1130-1140 area and that is the zone where ES can find better support.
But, ES likes to move in round numbers when it comes to higher timeframes, so a drop of 100 points from the year high made last week will put the target low at 1120 area. Wait a minute, isn’t that the 4th unclosed gap since the low made in August?