ES1 (SP500 Generic Front Month) – 11.8.23
*As the index pauses at the upper end of the recent trough-to-peak ~6.50% rally, I continue to believe that the 4380/4400 resistance level will hold. As I wrote previously, “I would expect a pause here whether or not there is more upside for the balance of the year”. Price action is consolidating, momentum (M1, M2) is flattening and volume (V1) continues to run significantly below average on buying (which is concerning). On balance my expectation here is that we will fade and retest 4300 before a potential move higher into year end. That view would change if the index was able to breakout above 4300 with expanding momentum and volume. That remains to be seen.
Trading Support:
- 4338: 200dma
- 4300: Previous Support/Resistance
- 4283: 10dma
- 4200: Previous Support
Trading Resistance:
- 4378: 50dma
- 4400: Previous Support
- 4430: Oct 12 high
- 4458: 100dma; Previous Support
