Based on yesterday’s action, I was expecting some additional upside – which happened over night.
However, during the market hours, the S&P pulled back and basically consolidated in the same region it did yesterday – this would be considered more bearish than bullish – as we already tested resistance above and failed.
So it’s a bit hard to read the markets with stronger certainty – but I would lean towards the bear side – as we formed a zig zag pattern intraday – stopping at 2466ES. Staying below this level overnight would be bearish for tomorrow.
So far the market has gone as predicted in the blue arrows – we went up towards 2470 ES and then came back down towards 2460 ES – and then settled at 2465 ES.
There is a setup for higher – however, if it does not move up – then we will roll over.
Nasdaq reached towards 5950 NQ where there is some proven resistance. There’s also support at 5900 — any breakdown below 5900 would point the blue arrow down. Otherwise, a move up in pink 5 is also possible.
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