The week ended with a thud, but the futures still failed to take out any lows on the daily chart. The first lies 66 points below Friday’s close, but it would take a further drop exceeding early June’s 4305 low to create even a hint of menace. In contrast, there are numerous bullish signs whose significance is beyond question. For one, a clear and compelling Hidden Pivot resistance at 4471.00 has been exceeded twice. This might look like a double top to some, but the fact that so challenging an impediment was exceeded at all suggests that any weakness will be merely corrective. Also, all price action since early June has occurred with the futures trading above a key ‘external’ peak at 4409 recorded last August. Under the circumstances, I’d suggest treating any further weakness, if it occurs at all, as a buying opportunity. Set an alert at 4305 if you like, but don’t let nutty intraday swings faze you or encourage excess in the meantime.
ESU23 – Sep E-Mini S&Ps (Last:4434)