ES1 (SP500 Generic Front Month) – 8.31.23
*As I stated yesterday, the index has rallied off the Aug 18 reversal bar and has broken above the “the 10dma (R10), 50dma (R50) and 4500 (R4500). In addition, momentum (M1) has shifted to positive confirming there may be some more upside left on this move in the near term”. At this point I would remain positive for the near term focusing on support at 4500 and resistance at 4550 and ~4600.
Repeat: As a very important note, the longer term set up for the index is shifting to negative as momentum for the Weekly period has shifted to negative for the first time since Nov 2022. In my opinion this is a significant development and one that should be considered as a warning sign for the intermediate/longer term health of the index.
Trading Support:
- 4500: Previous Resistance; 76.4% Retracement Level
- 4492: 50dma
- 4460: Previous Support
- 4444: 10dma
- 4400: Previous Support
- 4350: Recent low/support
- 4354: 100dma
- 4300: Previous Resistance
Trading Resistance:
- 4550: Previous short term support
- 4631: Mar 2022 Peak
Chart 1 (ES1 Daily Bars)
Source: Bloomberg and Scotiabank Est
