ES1 (SP500 Generic Front Month) – 8.17.23
*The overnight low for the index currently stands at 4409. I would consider this to be the test of the previously identified downside target of 4400. As I have stated over the past few weeks, 4400 stood out as a legitimate and “easily attainable” downside target once the index broke below ~4550 (Aug 2 forward) with confirming momentum (M1, M2) and volumes. All of this has played out as we anticipated. At this point I am very focused on how price and internals act and if we see divergence or confirmation of lower prices to come. I do remain negative on balance but I would be conscious of the index’s potential to hold 4400 and rally back towards the 4500 level in the near term.
Trading Support:
- 4400: Previous Support
- 4300: Previous
Trading Resistance:
- 4481: 10dma
- 4484: 50dma
- 4500: Previous Resistance; 76.4% Retracement Level
- 4550: Previous short term support
- 4631: Mar 2022 Peak
Chart 1 (ES1 Daily Bars)
