7/5: Daily Recap, Outlook, and Trading Plan
Recap
Last week we saw a massive 75-point one-day squeeze on Friday, following a long position at 4420 on Thursday. This was a rare occurrence, with moves of this magnitude happening on less than 3% of trading days annually. This happened due to a textbook bull flag pattern formed between June 16-26th, which then broke out at 4420 on Thursday.
The Markets Overnight
🌏 Asia: Down
🌍 Europe: Down
🌎 US Index Futures: Down
🛢 Crude Oil: Up strongly
💵 Dollar: Up slightly
🧐 Yields: Up
🔮 Crypto: Down
World Headline
Key Structures
The key structures to watch are 4458-64 & 4420-25, the bull flag in orange from the June highs, the 4374 level, and the large rising uptrend channel in white.
Support Levels
Supports are: 4485 (major), 4477-80, 4458-64 (major), 4442 (major), 4431, 4420-23 (major), 4413, 4404 (major), 4393 (major), 4382, 4376 (major), 4364, 4350-55 (major), 4345, 4330 (major).
Resistance Levels
Resistances are: 4493, 4502 (major), 4515, 4524, 4532-34 (major), 4549, 4560-65 (major), 4572, 4585 (major), 4595, 4605 (major), 4611, 4624, 4630-35 (major).
Trading Plan
As long as we are above last Thursday's 4420 breakout zone, there is no bear case. However, 4480-77 will be key to watch. If we continue flagging below 4493 and above 4480ish, I may consider adding more to my long. If we fail at 4480-77, this may represent a good quick level to level scalp on the short side.
Wrap Up
In summary, as long as 4480 keeps holding, a small bull flag from Friday is in play. This would target 4500-4502, then if that clears, we can push up the levels. First mini-dip begins on the fail of 4477-80 and possible short. As always, these plans may change as the market evolves. Always remember to trade responsibly.
Disclosure: This is not financial advice and is for informational purposes only. Please consult a professional financial advisor before making any investment decisions.
Last week we saw a massive 75-point one-day squeeze on Friday, following a long position at 4420 on Thursday. This was a rare occurrence, with moves of this magnitude happening on less than 3% of trading days annually. This happened due to a textbook bull flag pattern formed between June 16-26th, which then broke out at 4420 on Thursday.
The Markets Overnight
🌏 Asia: Down
🌍 Europe: Down
🌎 US Index Futures: Down
🛢 Crude Oil: Up strongly
💵 Dollar: Up slightly
🧐 Yields: Up
🔮 Crypto: Down
World Headline
- The stock market has taken a hit due to a missed Chinese Services PMI report.
- China has placed export restrictions on rare earth metals used in semiconductor production.
Key Structures
The key structures to watch are 4458-64 & 4420-25, the bull flag in orange from the June highs, the 4374 level, and the large rising uptrend channel in white.
Support Levels
Supports are: 4485 (major), 4477-80, 4458-64 (major), 4442 (major), 4431, 4420-23 (major), 4413, 4404 (major), 4393 (major), 4382, 4376 (major), 4364, 4350-55 (major), 4345, 4330 (major).
Resistance Levels
Resistances are: 4493, 4502 (major), 4515, 4524, 4532-34 (major), 4549, 4560-65 (major), 4572, 4585 (major), 4595, 4605 (major), 4611, 4624, 4630-35 (major).
Trading Plan
As long as we are above last Thursday's 4420 breakout zone, there is no bear case. However, 4480-77 will be key to watch. If we continue flagging below 4493 and above 4480ish, I may consider adding more to my long. If we fail at 4480-77, this may represent a good quick level to level scalp on the short side.
Wrap Up
In summary, as long as 4480 keeps holding, a small bull flag from Friday is in play. This would target 4500-4502, then if that clears, we can push up the levels. First mini-dip begins on the fail of 4477-80 and possible short. As always, these plans may change as the market evolves. Always remember to trade responsibly.
Disclosure: This is not financial advice and is for informational purposes only. Please consult a professional financial advisor before making any investment decisions.
