S&P 500 Sep 05 to Sep 09 Outlook

By News Robot

Lawrence’s Comment

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.

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