After dropping from the 1063.75-1064.25 PowerZone just before stocks opened on Monday, the ES was sold on the open and fell to the 1056.25-1055.50 PowerZone.
As stated last night: "if a pullback can hold the
initial support, the up-trends will remain intact and
the market should head back up."
That was reversed and after getting over the 1063.50-1064.00 area the move continued to a 1068.50 high. After a small dip, a 123 top set up from 1068.00 and the ES dropped to the new support at 1064.00-1063.50 zone. A bounce failed at 1067.00 and that was it for the upside. The market rolled over and all of the bounces failed as the ES went trend-down to 1053.00 at the 4pm close for stocks.
The early rally off of a good support area was sold on Monday, and for the second half of the day it was all down hill. After the Friday run-up, that was not impressive for a follow-up. The market is back into oversold status, but for now it looks like 2 sided action at best is in store for Tuesday. The trends are all to the downside unless the initial resistance zones are exceeded and held on a pullback. Even then, the market has its work cut out for it to put together a rally that can hold.
On Tuesday look for early weakness to reverse to set up a quick trade on the long side. If that plays out, the initial resistance should be watched for a reversal. If the 1059.50- 1060.25 PowerZone is not exceeded and held, then the bounces still are not sticking and lower prices will be in the cards. If the market gets hit with a hard selloff, then watch the 1022.00-1021.00 PowerZone for a possible bottom for this leg down.
Pivotfarm.com provides Support & Resistance, Fibonacci, Volume Analysis, Market Profile, Moving Average and Pivot Information for day traders. These data sheets are designed to help day traders gain an edge in the market, providing all the most important information a trader needs in one clear and concise data sheet. As stated last night: "if a pullback can hold the
initial support, the up-trends will remain intact and
the market should head back up."
That was reversed and after getting over the 1063.50-1064.00 area the move continued to a 1068.50 high. After a small dip, a 123 top set up from 1068.00 and the ES dropped to the new support at 1064.00-1063.50 zone. A bounce failed at 1067.00 and that was it for the upside. The market rolled over and all of the bounces failed as the ES went trend-down to 1053.00 at the 4pm close for stocks.
The early rally off of a good support area was sold on Monday, and for the second half of the day it was all down hill. After the Friday run-up, that was not impressive for a follow-up. The market is back into oversold status, but for now it looks like 2 sided action at best is in store for Tuesday. The trends are all to the downside unless the initial resistance zones are exceeded and held on a pullback. Even then, the market has its work cut out for it to put together a rally that can hold.
On Tuesday look for early weakness to reverse to set up a quick trade on the long side. If that plays out, the initial resistance should be watched for a reversal. If the 1059.50- 1060.25 PowerZone is not exceeded and held, then the bounces still are not sticking and lower prices will be in the cards. If the market gets hit with a hard selloff, then watch the 1022.00-1021.00 PowerZone for a possible bottom for this leg down.
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