Wednesday closed at 3369 in the ES, near the highs of the session and also at a new closing print high for the week. The entire day’s range was 3382.5-3326.50, including overnight hours. Wednesday was also a full retracement of Tuesday's losses, indicating that the quick backtest into daily 8EMA was stick-saved by the ongoing bulls.

The main takeaway is that given the ongoing momentum and stick saves we see in the indices across the board, we can effectively treat the low of the week as in from Tuesday's 3319.50 backtest in the Emini S&P 500 (ES). As such, today is either a "hold half and go" day or an immediate upside continuation when price action remains trending above our immediate supports.

Some additional highlights of our game plan:

The short-term action is just waiting for the acceleration phase towards 3397.50 as this high-level consolidation is providing the nice and tight bull flag for the continuation model.
A break above yesterday’s high 3382 would be the trigger level for the acceleration phase.
Based on the immediate momentum, when ES keeps sustaining above 3350, then everybody is waiting for 3397.50 ATHs target to be fulfilled.
A break below 3322 would be a confirmation that price action is not ready and something else is playing out because that’s the lows area from the past 2 sessions
Bigger picture wise, the important daily trending support has grinded up to 3280s and is changing as price consolidates/hovers around highs.

In addition, if we look at the other index such as NQ/tech, it has retraced to daily 20EMA in the past 2 days and got sticksaved like clockwork and now grinding towards highs. This means that this is merely just rotation play and tech is likely going to lead the next ramp again as it is now ready

Friendly reminder, four out of four US indices are either hovering at the upper daily bollinger bands or above it since August 7th closing print, so being cautious of another consolidation/mean reversion must be noted or appropriate hedging vs lots of unrealized profits is not a bad idea.

See chart reviews and projections on the Emini S&P 500.

Ricky Wen is an analyst at ElliottWaveTrader.net, where he hosts the ES Trade Alerts premium subscription service.

© 2020 Copyright Ricky Wen - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Only logged in users are allowed to post comments. Register/ Log in

The Market Oracle is a FREE Financial Markets Forecasting & Analysis web-site.
(c) 2005-2024 MarketOracle.co.uk (Market Oracle Ltd) - Market Oracle Ltd asserts copyright on all articles authored by our editorial team and all comments posted. Any and all information provided within the web-site, is for general information purposes only and Market Oracle Ltd do not warrant the accuracy, timeliness or suitability of any information provided on this site. nor is or shall be deemed to constitute, financial or any other advice or recommendation by us. and are also not meant to be investment advice or solicitation or recommendation to establish market positions. We do not give investment advice and our comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to enter into a market position either stock, option, futures contract, bonds, commodity or any other financial instrument at any time. We recommend that independent professional advice is obtained before you make any investment or trading decisions. By using this site you agree to this sites Terms of Use. From time to time we promote or endorse certain products / services that we believe are worthy of your time and attention. In return for that endorsement and only in the cases where you purchase directly though us may we be compensated by the producers of those products.