ES/SPY Weekend Look (Sep 20-24)

Here is the weekend look going into next week. Bearish feel on OPEX Friday which is typically marked my choppy price action as traders fight to keep price around key strikes. Last week closed at the low after trending down all day. Interestingly the small cap growth finished green on a day that interest rates saw a move up. So the weakness can be attributed to a drop in the mega caps tech names. Apple will be a key name to watch as it could bring down the entire market by itself. Price closed below the neutral(618) and is threatening to make a full AB=CD correction to the lower green box. The chart is a little messy but I wanted to show the fib clusters. Any area with a fib cluster could provide support. Obviously the Aug 19th low will be a key pivot if it drops that far this week. Good luck and happy trading.

Of Note: FOMC on tap this week and will dominate the narrative.

Comentarios:

Massive dump and flush below the Aug 19th pivot. This type of price action will likely be common going forward with so much new short term money in the markets. Stops were hit yesterday and many quickly piled on short. It was a positive that price managed to bounce back and hold the Aug 19 low at 4347, but the low needs to hold if we want to avoid another big down day. Note that the green boxes when broken become resistance. Look for price to reclaim the ema cloud on the 5-15m charts to signal trend reversal. Possibility of chop high with FOMC still on tap.

Comentarios:

The compound correction was completed giving us a new low pivot to work with. Here is the new neutral zone. Positive price action right now after FOMC. Good chance we push up to the top of the neutral box. Watch for resistance there. Also have the 21 ema to get through. Roll over risk remains until the neutral is cleared.

Comentarios:

Top of neutral is always resistance until its not as price moves up.