The market formed a low on Monday last week and then moved mostly higher for the rest of the week.
Looking ahead, options data is somewhat bullish on review today. Internals are neutral. Price action is short term bullish, medium term neutral and long term bullish.
After getting stopped out on our initial long attempt, we had a re-entry into a partial long on Wednesday last week and we are still holding that via a C-Class trade. The market so far is facing resistance near the breakdown point of the long-term channel we have been in for the long time (see lines on ES chart). If we get above this line at 4460 and then the resistance zone at 4480/85, then most likely we saw the low of the correction last week.
I do also see the possibility for a pullback very early in the week that tests the 4400 area before moving back higher to break out above 4460 and then 4485. This is, however, not an easy or clear picture right now, so best to be cautious in either direction.
For now, our indicators support a partial long, so we hold until that changes into either a full long position OR a partial short position… all options are open at the moment. So it’s one day at a time right now -- and adjust as the market gives us new information.
Grey zone resistance at 4472-86. Support is at 4420-10, 4377-4367, 4330-21, 4300-4292 and then at 4232-22.
For Monday, daily pivot is at 4436.5. Resistance R1 is at 4462.5 and R2 at 4479. Support S1 is at 4420 and S2 at 4394.5.
All the best to your trading week ahead.