ES 5,500 Support Is On Watch
JOLTs, Powell could fire up headline algos
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Our View
After selling off from the open, the S&P 500 was able to shake off the dip and close higher on the day. It marked the 18th straight green day on the first trading day of July. While it wasn’t a powerful rally, this is what I meant yesterday when we were talking about the beginning of the month and beginning of the quarter in-flows.
As we turn our attention to Tuesday, it’s the last full trading session until Friday’s session. Even though we’ll get the jobs report on Friday, it should be a quiet couple of days for trading volume, especially Wednesday through Friday.
Today Powell speaks at 9:30 a.m. ET and the JOLTs report will be released at 10 a.m. The latter, which shows job openings, held firm through the first four months of the year but has dipped in May and June. Let’s see if that trend continues.
Either way, both events have the potential to create some intraday volatility and fire up the headline algos, so be ready for that.
Our Lean
I will return from my trip to Chicago today, but I am staying away from trading the markets during my time away. That being said, the ES is under pressure in Globex and likely to lean on current support near 5500, +/-10 points.
Keep a close eye on this area. It was a resistance level in the first half of June, then support all throughout the second half of the month. At least on its first test — and we could see a quick stop-run — I would expect some sort of bounce. The question is, will that bounce hold and lead to higher prices or will it just be a bounce to sell? Other levels below.
MrTopStep Levels:
Technical Edge
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NYSE Breadth: 37% Upside Volume
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Nasdaq Breadth: 57% Upside Volume
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Advance/Decline: 30% Advance
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VIX: ~12.50
NQ
NQ Daily
Guest Post — Niels at Tradrr
Shortened trading week leaves GC in a state of coiling with Zone 1 being an ideal target for filling in the prior week’s low volume node with potential to sweep above the highs set mid June.
Considering scheduled market events further building of Zone 2 is unreasonable but plausible if the end result of this week leaves metals mixed maintaining the current balance.
Zone 3 should be an area to target should there be failure from Zone 1 to resume the previous overarching downtrend indicated by the lower highs from the start and middle of June.
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Economic Calendar
For a more complete Economic Calendar see: https://mrtopstep.com/economic-calendar/
Disclaimer: Charts and analysis are for discussion and education purposes only. I am not a financial advisor, do not give financial advice and am not recommending the buying or selling of any security.
Remember: Not all setups will trigger. Not all setups will be profitable. Not all setups should be taken. These are simply the setups that I have put together for years on my own and what I watch as part of my own “game plan” coming into each day. Good luck!
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