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!
Do those around you a favor, if you found this blog/post useful, do leave a comment and share the link!
Join in the Telegram group https://t.me/DrWealthHacker