ES1 (SP500 Generic Front Month) – 8.10.23
*The index continued to trade as expected during yesterday’s session by testing resistance at the 10dma (ref 4543) with a high of 4536 and also testing support at the 50dma (ref 4467) with a low of 4478. I have been focused on both of these levels as a significant support/resistance range and stated yesterday that “I am looking for a decisive move in price either below the 50dma or above the 10dma”. While the new incremental low yesterday along with confirming negative momentum (M1, M2) and above average volume add confidence to my negative bias I am respectful of the fact that the 50dma has acted as significant support since late April at the 4050 level (S1, S2, S3). In short (no pun intended), I continue to believe the greater risk for the market is to the downside from current levels but I am very focused on the 50dma and its ability, or lack of ability, to hold.
Trading Support:
- 4500: Previous Resistance; 76.4% Retracement Level
- 4400: Previous Support
- 4300: Previous Resistance; 50dma at 4467
Trading Resistance:
- 4550: Previous short-term support
- 4543: 10dma
- 4631: Mar 2022 Peak
