Recap As expected, ES drifted up early in the week to the huge bear flag formation target of 1230-1240 area as mentioned last week. Then ES sold off all the way back down to the midpoint of the inside week breakout range.
Outlook False breakout to the upside often puts the other end of the tight range in play meaning Y-1 can happen quickly if ES continue to sell off starting Monday.
Unlike Dow or NQ, notice that there is this clear horizontal gap area around 1180-1190 that ES has been gapping above and below for several weeks already.
That tells us the importance of this zone and price reaction from there will give us clues if ES will actually move much lower as expected.
Overview
Emini overnight range 2176.75 to 2180.75 (at 9:00 am)
Overnight Midpoint 2178.75
Previous Month High 2171.75
Battleplan for the Day
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Lawrence's Comment
Recap
Cable went sideway until ECB announcement. Successfully filled the open gap above as expected. Closed the week above Y+1 and midpoint.
Outlook
Strong resistance zone above B+1 upto B+2 ...
S&P 500 Sep 05 to Sep 09 Outlook
Lawrence’s Comment
As expected, ES drifted up early in the week to the huge bear flag formation target of 1230-1240 area as mentioned last week. Then ES sold off all the way back down to the midpoint of the inside week breakout range.
Outlook
False breakout to the upside often puts the other end of the tight range in play meaning Y-1 can happen quickly if ES continue to sell off starting Monday.
Unlike Dow or NQ, notice that there is this clear horizontal gap area around 1180-1190 that ES has been gapping above and below for several weeks already.
That tells us the importance of this zone and price reaction from there will give us clues if ES will actually move much lower as expected.
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