Saturday, July 13, 2024

ES Morning Update July 2nd 2018

Ok gang, this week we have a half day trading on Tuesday and no trading on Wednesday as it's the 4th of July holiday. I don't expect a whole lot this week as the very light volume "should" prevent any serious drops from happening and allow a light float up. So this mornings weakness should be contained above that 2690 area (if it even drops that far?), but on the flip side the light volume should keep the bulls from busting through overhead resistance as well... at least until traders come back and add more volume.

This move down this morning is also making a nice "inverted head and shoulders" pattern which could push prices up to the rising blue trendline and/or the falling green trendline... both pointing to around 2770 currently. This move could start today or tomorrow but I don't see the 2740 zone broken until after the 4th of July when we see a little more volume, like this Thursday or Friday. Today the Fed's are their reverse QT, where they are selling like 18 Billion into the market starting around 1pm EST I believe.

I could be wrong on the number but the bottom line is that this selling could keep any bounces to a minimum in the market until it's finished. That's why I'm leaning more toward tomorrow starting the move up instead of today. As for tomorrow I may or may not do a post? Not sure yet? I'll just play it by ear so to speak and if I think there needs to be another update I'll do one. But if we find a bottom today and put in some positive divergence then that sets up tomorrow to start a move up. So just look for that to happen on the 60 minute chart and you'll have your answer on what to expect next. Naturally they'll be no post on Wednesday.

Author: Red

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