Hello Everyone,
Today we saw the first pullback/retrace of the rally leg from late last week. With today's action ES/SPX is now backtesting it's breakout area with the bulls wanting to hold the 20 day SMA and rally/bounce. With today's decline we have a shift in market structure on the intraday charts as a result of breaking below a prior low. However, SPX also has daily demand zone just below 4135-4110 that aligns with the 20 day MA. The VIX reached supply zone today and pulled back (will show in newsletter).
QQQ also broke structure and now has a supply zone above at 335.70-337 to note. Thus keeping open to a potential a-b-c type pullback if support holds.
Finally, it's wise to stay abreast of the debt ceiling talks (debacle) in the coming days as to not get caught off guard on such news event.
Please take a moment to look at the trade ideas.
