Eye On 4550/4500 Area For Low

In our report last weekend, I noted about our indicators:  "All of this suggests that while we may get one more high, we are nearing a more significant pullback ahead."

We got that pullback indeed.  After hitting an all time high, the market could not hold those levels and sold off for the rest of the week to end at the lows.

Looking ahead to this week, price action is bearish short term, neutral to bearish medium term and bullish long term. Our Odds Indicator is Short.  Internals are overall neutral.  

After hitting all-time highs, market could not hold on to it with supply coming into the market. There are many possibilities and options here as to what might happen next. I prefer the idea of one more high out there up to the 4850 level, but we can also just as easily make a lower higher in the 4740/50 area before going for lower lows in the 4550/4500 area in the Emini S&P 500 (ES) where we can set a more long lasting low. 

Either way, I am expecting some immediate strength to start the week up into the 4720 and maybe the 4740 area. How we react there will tell us a lot about what next.

As far as pivots and resistance are concerned, grey zone resistance is at 4716-28 and then 4747-53. Support is at 4663-53 and then 4624-13.

For Monday, daily pivot is at 4675.5.  Resistance R1 is at 4697.5 and R2 at 4727.5. Support S1 is at 4645.5 and S2 at 4624.

All the best to your trading week ahead.

Princely Mathew hosts The Smart Money premium service at ElliottWaveTrader.