Just a quick pre-market note…

The S&P500 futures appear to have failed resistance, not once, but twice. The resistance consist of a Gap (in the futures, which is an unusual, and therefore, significant phenomena to be respected), a daily TD Resistance line, and the daily 55EMA. These failure to break above is apparent in the hourly and 4hourly charts (top left and top right panels).

In the daily chart, the dead cat bounce is forming what we refer as a sandwich, where stacks of candlesticks pile upon each other. The following outcome is a volatile breakout/breakdown… coming soon (Akan datang…). Thus far, the ES is playing out as expected, albeit a little earlier. A bounce and consolidation (Orange area) followed by a further fall over was drawn up after the long down candle.

So, let’s see if the support lines mapped are broken, one by one, over the course of the rest of the week. Remember that last weekend we had the second Down Friday Down Monday. In addition, the fundamental backdrop is not to exciting as previous large dips, outlined in this article.

Oh, did I mention? The Yield curve just inverted!

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NOTICE
FUTURES AND OPTIONS TRADING CARRIES SIGNIFICANT RISK AND YOU CAN LOSE SOME, ALL OR EVEN MORE THAN YOUR INVESTMENT.
STOCK TRADING INVOLVES HIGH RISKS AND YOU CAN LOSE A SIGNIFICANT AMOUNT OF MONEY.
THE INFORMATION CONTAINED HERE IS PURELY FOR INFORMATION AND WAS GATHERED FROM SOURCES DEEMED RELIABLE, HOWEVER, NO CLAIM IS MADE AS TO ITS ACCURACY OR CONTENT. THIS DOES NOT CONTAIN SPECIFIC RECOMMENDATIONS TO BUY OR SELL AT PARTICULAR PRICES OR TIMES, NOR SHOULD ANY OF THE EXAMPLES PRESENTED BE DEEMED AS SUCH. THERE IS A RISK OF LOSS IN TRADING FUTURES AND FUTURES OPTIONS AND STOCKS AND STOCKS OPTIONS AND YOU SHOULD CAREFULLY CONSIDER YOUR FINANCIAL POSITION BEFORE MAKING ANY TRADES. THE REFERENCE TO STATISTICAL PROBABILITIES DOES NOT PERTAIN TO PROFITABILITY, BUT RATHER TO THE DIRECTION OF THE MARKET. THE SIZE AND THE DURATION OF THE MARKETS MOVE, AS WELL AS ENTRY AND EXIT PRICES ULTIMATELY DETERMINES SUCCESS OR FAILURE IN A TRADE AND IS IN NO WAY REPRESENTED IN THESE STATISTICS. THIS IS NOT, NOR IS IT INTENDED TO BE, A COMPLETE STUDY OF CHART PATTERNS OR TECHNICAL ANALYSIS AND SHOULD NOT BE DEEMED AS SUCH.
CHARTS ARE FROM TRADINGVIEW
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