What you need to know
ES1 (SP500 Generic Front Month) – 7.11.23
*As the Index tested long term resistance at 4500 for the second time (B) on Jun30/Jul3 three downside targets were identified. The 10dma (ref 4450), 4400 and 4300. The low for the current retracement is 4411. With that, the first downside target (10dma) was hit and the Index came within 11 handles of hitting the second target (4400). Although the Index closed well off the lows yesterday at 4444 I continue to see the 10dma act as resistance with momentum (M1, M2) confirming weakness in price. Although the Index is doing some work, the set up continues to favor lower prices in the near term with 4400 and 4300 as solid downside targets.
Trading Support:
- 4400: Previous Support
- 4300: Previous Resistance
- 4200: Previous Resistance; 50dma at 4292
- 4100: Key Level; Previous Support/Resistance
Trading Resistance:
- 4450: 10dma at 4450
- 4500: Previous Resistance; 76.4% retracement level
