Hello Everyone,
Following yesterday's NVDA report the SPX/QQQ moved higher from Wednesday close and remained big overnight. This led to a gap higher open which was once again immediately faded (sold) by traders and this time there was no let up in the selling all the way into the closing bell. The end result were outside reversal candles in the indices. Nasty day for those who chased the move. As I stated on the weekend, the indices were oversold and we were looking for a rebound back near the moving averages but with such strong downside momentum in place to take things level to level. Bottom line is we saw a major rejection upon the first test of the highlighted resistance zone. The onus shifts back to the bulls ahead of Chair Powell speech tomorrow.
ES levels updated on the trading community. Bulls need to hold the 4365/75 zone to test upside levels and reclaim 4407 to squeeze higher.
Please take a moment to look at the trade ideas.
