Hello Everyone,
As I stated last Thursday prior to the NFP report, energy was building as the SPX/QQQ were coiled into the report - the initial reaction was a quick drop (gap down) that held support and released a buying wave (short squeeze) that has allowed price to move up three days to test their respective 50 day MAs. Today, we did see some profit taking from the late morning highs resulting in spinning top candles for both indices. For now the bulls have the ball and we respect the trend until evidence changes - the bulls want to form a higher low and take out prior highs (which has yet to occur in the bigger picture) while bears want to move direct down OR following a larger a-b-c corrective move.
Hedge Funds are helping to fuel the bounce after deleveraging near the lows paired with the CTA positioning now increasing. It's all about fund flows. On the economic front we have PPI and CPI the next two sessions.
ES support below 4388 and 4377/70 with resistance at 4418/22 4435/45
Please take a moment to look at the trade ideas.
