S&P 500 Week of Nov 15th to 19th Outlook
Recap of last week
As stated in last week’s outlook, “a pause or a pullback” is very likely. 1200 was the support to look for clue for the move after the initial pullback. Here is an update to the chart from last week.
1200 level in ES is now breached. However, the drop stopped right at previous month high + current month 50% and bounced off. Completely following STOPD as if it was played out from a script!
Next week outlook
Using weekly timeframe, we can tell that the November initiation top extreme is tested and rejected. So next move is to test the other extreme, which is also the current month low.
The 50% area of current month is also previous month high zone (red) thus ES will have to stay below this level, or, should a test from below happen, move quickly below this level again for the target zone (yellow) to be tagged this week. If the red zone turns into a support zone in the beginning of the week, 1215 will be tagged.