Weekend Review & What's Significant - ES Futures
Week of 9/8/2024
Happy Weekend Traders,
I hope everyone had a restful weekend. Last week's calls during the morning outlooks were spot on—we warned that slipping below 5598 could lead to a free fall, and that's exactly what happened. After breaking 5598, we back-tested our significant daily level at 5567, leading to an extreme bearish move for the next two days. We also highlighted that dropping below 5516.25 could trigger a significant bearish move, and sure enough, we saw a 100-point drop in just a few hours.
We’re now deep in bearish territory after Friday’s very bearish close. I believe we may slip into the 5300 range in a short period of time. While there are still untested levels above us, the support levels below are thinning out. Until we start holding support on at least a 4-hour timeframe, we should be very cautious about holding long positions.
If we break below 5300, I believe new lows under the 5120s are extremely likely. The sharp rejection from the highs at 5668 was devastating for the bulls—we rallied for three weeks only to hit resistance without gaining ground on the weekly chart. This could be a signal that new lows are on the horizon.
I’ll go over the key levels to watch in the video below, but keep in mind that we only have two major news events this week (Wednesday and Thursday). However, given last week’s extreme bearish price action, we should anticipate more volatility. If we drop below 5300, expect extreme levels of volatility and large price swings, with larger than average daily movements.
Take a look at the video for more details on the levels to watch. I hope you all have a great weekend, and let's conquer the markets next week!
Cheers
Ryan Bailey
VICI Trading Solutions
NEWS
Weekend Review