As we head into Tuesday, ES is showing signs of structural weakness following a significant sell-off, culminating in a late dip into the 6845-6840 demand zone. The prevailing trend appears to be downward as long as prices remain beneath the resistance range of 6863-6874. However, the 6845-6840 support still has the potential to trigger a rebound. Traders should anticipate the most decisive price action around major data releases, followed by a phased, level-to-level approach in trading strategy.
EVENTS THAT CAN MOVE ES (ET)
2:00am UK labor data
3:15am-5:00am Eurozone PMI batch + ZEW sentiment window
8:30am US jobs data bundle + Retail Sales + Earnings + Unemployment
9:45am US Flash PMI
10:00am Business Inventories
4:30pm API oil stats (can hit energy tone into the close)
Market Outlook: NY Session Forecast
In the upcoming New York trading session, we anticipate a period of consolidation likely to include a modest rebound attempt. However, this upside movement is expected to face resistance within the range of 6859 and 6863-6874. Should sellers maintain pressure and keep prices below 6863 as we head into the session, we could see a subsequent pullback towards the 6845-6840 range, followed by a potential drop to 6825.
On the bullish side, if the market can decisively reclaim and sustain levels above 6874, we might open the door for a rally towards 6902 and possibly 6923.
Conversely, a clear breach below 6840 that lacks immediate recovery signals strengthens the bearish outlook, targeting 6825 initially, with the potential for a further decline to 6800-6790.
ES Short (A++) - Sell 6863-6874 - SL 6876.50 - TP1 6845-6840 TP2 6825 TP3 6800-6790
Key zones
Support - 6845-6840, 6825, 6800-6790
Resistance - 6851-6859, 6863-6874, 6902, 6923-6936
A++ Setup 1 - Short (ceiling fade)
Entry - Sell 6863-6866 after a rejection from 6863-6874
Stop - 6876.50 (above the rejection high)
TP1 - 6845-6840
TP2 - 6825
TP3 - 6800-6790
ES Long (A++) - Buy 6825 reclaim - SL 6814.25 - TP1 6863 TP2 6902 TP3 6923
A++ Setup 2 - Long (flush then reclaim)
Entry - Buy 6825-6828 only after price reclaims and holds above 6825
Stop - 6814.25 (below the flush low)
TP1 - 6863
TP2 - 6902
TP3 - 6923
Good Luck !!!
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info@algoindex.com, algoindex.com | Join our free trading community: facebook.com/groups/1256769122661043
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.