Even with the hard rebound in price, our indicators are holding the short side, so we continue to hold the short trade, but we will be on the lookout for an exit in the coming week.
Options data is bullish on review today. Internals are neutral. Price action is short term bullish, medium term neutral and long term bullish.
It's a difficult environment for swing trading, but we can only play the cards we are dealt. On price, I am looking for resistance to come in between here and the 4000 area on the Emini S&P 500 (ES). I am also looking for a pullback at a minimum to materialize toward the 3920 area.
IF the M2/NYHL indicator flips long in that area, we will cover the short trade and go long for a move to 4000+.
There is a more bearish scenario possible where 3920 area does not hold… but right now that does seem lower odds so we will go with the above scenario as our primary.
ES grey zone resistance is at 3971-79 and then at 3995-4005 area. Support is at 3960-53, 3939-29 and then at 3910-3901.
For Monday, daily pivot is at 3943.5. Resistance R1 is at 3986.5 and R2 at 4011. Support S1 is at 3919.5 and S2 at 3876.5.
All the best to your trading week ahead.