Recap ES gapped down with Dow to its Y-2 target Monday. ES then it staged a bottom and gap up to fill the gap above upto 1200 which is also the resistance area Y-0. ES sold off from Y-0 back down to Y-2. Closed the week near the low of the week.
Outlook Not as strong as NQ that formed a higher low, but not as weak as Dow either.
S&P is facing a difficult decision here. It can either form a bottom here and start a rally on daily timeframe that has the potential to form a new high of the year, or, sell off to retest the low of the year.
Effectively ES has established a range of 1100 to 1200 as its consolidation zone on weekly. As long as ES stays within the range, we should treat it as range trading.
Daytrading is best in an environemnt like this as intraday volatility stays very high.
S&P 500 Sep 12 to Sep 16 Outlook
Lawrence’s Comment
ES gapped down with Dow to its Y-2 target Monday. ES then it staged a bottom and gap up to fill the gap above upto 1200 which is also the resistance area Y-0. ES sold off from Y-0 back down to Y-2. Closed the week near the low of the week.
Outlook
Not as strong as NQ that formed a higher low, but not as weak as Dow either.
S&P is facing a difficult decision here. It can either form a bottom here and start a rally on daily timeframe that has the potential to form a new high of the year, or, sell off to retest the low of the year.
Effectively ES has established a range of 1100 to 1200 as its consolidation zone on weekly. As long as ES stays within the range, we should treat it as range trading.
Daytrading is best in an environemnt like this as intraday volatility stays very high.
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