Hey Traders,
SP500 has now rallied over 50% finding itself in a very interesting place, with bullish sentiment at all time record bullishness:
and also right at 38% retracement of the whole bear market which also happened to be the backtest of two previous channels, which have stopped this rally at least on Friday:
Sentiment, bias and overbought conditions aside, besides this retracement and trendlines there really isn’t much in the way of Sp500 retracing 50% of the bear market.
Market momentum continues to drive this higher further squeezing the bears with little to no concern for good OR bad news, earnings, econ data and dollar strength or weakness.
Here are some big picture support levels on ES – SP500e mini futures, that longer term dip buyers are likely to step in at:
Yellow lines also higlight two unfilled gaps that will come into play on any retracement towards higlighted support levels.
On hourly time frame will be watching / scalping these levels for further clues:
Chart is self explanatory, highlighted areas are expected support levels, purple line is 200ema and blue lines are the channel and the wedge that have been respected numerous times during the last 2 weeks.
As always will keep posting intraday market internals, technicals and charts via my twitter account @esecfutures and on this blog.
Good luck and great trading to all this week
Vlad