Recap ES gapped down with Dow to its Y-2 target Monday. ES then it staged a bottom and gap up to fill the gap above upto 1200 which is also the resistance area Y-0. ES sold off from Y-0 back down to Y-2. Closed the week near the low of the week.
Outlook Not as strong as NQ that formed a higher low, but not as weak as Dow either.
S&P is facing a difficult decision here. It can either form a bottom here and start a rally on daily timeframe that has the potential to form a new high of the year, or, sell off to retest the low of the year.
Effectively ES has established a range of 1100 to 1200 as its consolidation zone on weekly. As long as ES stays within the range, we should treat it as range trading.
Daytrading is best in an environemnt like this as intraday volatility stays very high.
ContentReviewEuro Bulls are TrappedS&P Feels the Power of 2 Trillion DollarsGold in Weekly ConsolidationBitcoin at Its Most Important Junction10-Year Note Yield Rate can Go a Lot Higher and Much Faster ...
Lawrence's Comment
Recap
Euro refused to go lower in the beginning of the week and challenged Y-0. Failed to clear Y-0, euro started its move to go down to the 1.32 long ...
S&P 500 Sep 12 to Sep 16 Outlook
Lawrence’s Comment
ES gapped down with Dow to its Y-2 target Monday. ES then it staged a bottom and gap up to fill the gap above upto 1200 which is also the resistance area Y-0. ES sold off from Y-0 back down to Y-2. Closed the week near the low of the week.
Outlook
Not as strong as NQ that formed a higher low, but not as weak as Dow either.
S&P is facing a difficult decision here. It can either form a bottom here and start a rally on daily timeframe that has the potential to form a new high of the year, or, sell off to retest the low of the year.
Effectively ES has established a range of 1100 to 1200 as its consolidation zone on weekly. As long as ES stays within the range, we should treat it as range trading.
Daytrading is best in an environemnt like this as intraday volatility stays very high.
Share