ES1 (SP500 Generic Front Month) – 8.1.23
*As mentioned in yesterday’s note the Index seems to be stuck in a short term support/resistance range of 4550/4630. Since hitting a recent high of 4634 on Jul 27, the index has churned with fading volume and flat to negative momentum (M1, M2). The Index seems to be doing some work at the top of a recent range which lands us ~10% above the last major breakout through 4200. I see risk here as essentially neutral with a slight negative bias and more price action needed to add to any conviction. I would note that the longer we sit below resistance with fading volume and momentum the more negative that bias will become.
Trading Support:
- 4589: 10dma
- 4550: Short term support
- 4500: Previous Resistance; 76.4% Retracement Level
- 4400: Previous Support
- 4300: Previous Resistance; 50dma at 4421
Trading Resistance:
- 4631: Mar 2022 Peak
