Support Levels To Watch Ahead Of Next Upleg

In last weekend’s update, we wrote:  "For the coming week, let us see if the market can pullback more into the 4400/4350 area and find some support there for one more leg higher." 

What actually happened is that the market tested the 4580 area on the Emini S&P 500 (ES) and the underside of the broken channel again before selling off toward 4400.

Looking ahead for this week, price action is bearish short- and medium-term and neutral long term. Internals look weak on all timeframes. Price tested the underside of the channel again and then sold off hard. There is support in the 4350 to 4280 areas below, and I think we can find support somewhere around there and begin another leg higher toward 4600 in this long drawn out correction. 

If 4280 goes, then new lows are coming directly instead of the long drawn-out correction I am favoring right now. On the upside, resistance comes in at 4450/55 and taking this out to the upside is the first sign that we might have some sort of low in place. The coming week is monthly OpEx week, so we could continue to see exaggerated moves in both directions.

In terms of pivots and zones to watch, grey zone resistance at 4441-53, 4514-29, 4571-85 and then 4650 area. Support is at 4406/4392 and then 4340-23.

For Monday, daily pivot is at 4444.  Resistance R1 is at 4494.5 and R2 at 4571. Support S1 is at 4367.5 and S2 at 4316.5.

All the best to your trading week ahead.

Princely Mathew hosts The Smart Money premium service at ElliottWaveTrader.