Internals Mildly Bullish, Options Data Neutral

The market pulled back more than I expected last week in what could be a retest of the lows before ending the week almost unchanged. 

Looking ahead, options data is neutral on review today. Internals are mildly bullish. Price action is short term bullish, medium term neutral and long term bullish. We are long and holding based on our trading system rules.

We had a retest of the lows in the middle of the week and a decent rally from there, although not a lot of strength is evident behind this move and we could be setting up a secondary high in the next few days before another retest of the lows or lower lows. We have a few moving parts here and need more information for a clear directional bias.  Above Friday’s highs, we are likely to test ATHs again. Below 4135 on the Emini S&P 500 (ES), we are likely to test the lows again. And based on our trading signals, we are likely to reduce size on longs early in the week and wait/watch for support from our indicators to either add back size or go completely flat.  

Pivots/Zones -

Looking at our gray zone and pivot area, grey zone resistance is at 4175-85 and then at 4220-30. Support is at 4146-34,  4119-4107 and then 4080-67.

For Monday, daily pivot is at 4163.  Resistance R1 is at 4179.5 and R2 at 4201. Support S1 is at 4141.5 and S2 at 4125.

All the best to your trading week ahead.

Princely Mathew hosts The Smart Money premium service at ElliottWaveTrader.