Hello Everyone,
Similar to last Thursday, the indices gapped down on the open and then managed to work higher (squeeze the bears) as the VIX open gap higher was once again faded. We ended the the session with ES in a resistance zone (4135-4145). Since the SPX peaked last Tuesday, we have been monitoring a potential wave 4 to unfold and thus far that still remains valid with W5 currently now underway of the potential of a more complex Wave 4 still unfolding. Will review in the charts below.
Short term, I provided an outline - best guess last Thursday for both the SPX and QQQ which unfolded quite nicely (never easy, especially on smaller time frames) providing something for both the bears and the bulls over the past couple sessions. Quite honestly, price action has been contained in a range with energy building ahead of the CPI on Wednesday.
Key levels 4145 then 4170 topside and 4118 and 4100 support levels (ES). If the bulls can hold above 4130 in the IB session (first hour) then likely to test towards that 4170 area - if 4130 support is lost then 4100 could be tested again.
Please take a moment to look at the trade ideas.
