ES1 (SP500 Generic Front Month) – 4.1.24
*The index continues to grind higher within a very clean, orderly and somewhat vertical uptrend channel (C1). Additionally, the 10dma (ref 5282) remains reliable as trade support. To note, the index has now rallied ~27% off the Oct 2023 low (ref 4217). Almost 30% in just 5 months, not too bad. Risk remains to the upside. That said notice how momentum (M1) has diverged from price as it remains flat and churning. Additionally, it has broken down below the lower band of its respective uptrend channel (red flag). All in, I would remain cautiously positive here with a very close eye on price holding the 10dma and the trend channel support as well as being conscious of a real breakdown in momentum (M1, M2).
Trading Support (Daily):
- 5282: 10dma
- 5189: 10wma
- 5129: 50dma
Trading Resistance (Daily):
- 5400: Current Top of Trend Channel
