Bulls dropped the ball right at resistance last night at 2185ES –but then bears dropped the ball this morning. Bears needed to bring this down below 2165ES – and there would be a chance of getting into the 2140s. The support and resistance levels are noted below.
Note that Nasdaq got hammered but seems to be floating back up. Russel meanwhile was the monster in the room, rallying ferociously – just look at how the last week compares with previuos rallies in the Russell.
The S&P has been very quiet this past week since the election – mostly consolidating near that 2160 level we talked about before the election.
The Nasdaq has been negative and the Russell has been extremely positive. The disconnect between all these indices is mindboggling, but it is what it is.
So far we are being very patient with our trade and cautious about position size. Outside of the index trade, we are preparing for another trade in another asset class that I pointed out a month ago and we are in the midst of preparing for that trade which provide good risk/reward.
A break of 2165 would open the door for further below. Bears weren’t able to do that today, though they still have a chance overnight.
The resistance at 2185-2193ES region has been resistance for months — it won’t be easy to break through, unless there’s some catalyst.
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