ES1 (SP500 Generic Front Month) – 7.20.23
*The Index hit a high during yesterday’s session of 4609 just shy of the next upside target of 4631. Momentum (M1, M2), although somewhat extended, continues to improve and confirm that overall the move higher remains in place. That said, I think the Index could easily take a breather here and test the 10dma (ref 4526) which is ~1.5% below the current Index price. That test will be first line of defense for the bulls with 4500 to follow. Again, I will be looking for these tests of support and will focus on the internals as they play out.
Just as a note, I will be out of the office starting tomorrow through Thursday Jul 27.
Trading Support:
- 4526: 10dma
- 4500: Previous Resistance; 76.4% Retracement Level
- 4400: Previous Support
- 4300: Previous Resistance; 50dma at 4351
Trading Resistance:
- 4586: Feb 2022 Double Top Peak
- 4631: Mar 2022 Peak
