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S&P500 (ES) Attempts Another Dead Cat Bounce From Fresh 2022 Low

S&P500 (ES) Attempts Another Dead Cat Bounce From Fresh 2022 Low

Posted October 4, 2022
Darren Chu
Tradable Patterns

The S&P500 (ES) is bumping up against downchannel resistance (on the 4hr chart) but appears poised to surge higher as it has just broken what is arguably a descending wedge resistance (on the daily chart).  ES is poised to extend the rebound off its fresh 2022 low formed yesterday, as it has now clawed back above the prior 2022 low (of June), and appears to be gearing up for another Dead Cat Bounce (but weaker in magnitude) relative to the late June-late August one.  Near-term bullish catalysts may arrive from any of today’s 10am EST US Jolts job openings, Wednesday’s US ADP non-farm employment change and ISM services PMI, and Friday’s highly anticipated US Non-Farm Payrolls (NFP).  The escalation in the Ukraine-Russia conflict deserves close monitoring.  Congratulations to paying subscribers who benefited from the February 18, 2020 analysis one day before the record high in the ES, warning of the pending slide in the S&P500.  Except for the still downsloping weekly MACD, the weekly and daily RSI, Stochastics and MACD are bottomish.  I am looking to enter short in the red zone (of the daily chart) which I do not expect to be hit until at least late October, targeting the green zone for sometime by mid November.  The amber/yellow zone is where I might place a stop if I was a swing trader (although in my personal account with which I seldom hold overnight I sometimes set my stops tighter).  Click here for analysis on NASDAQ100, GBPAUD

Source: Interactive Brokers TWS

Sample of Today’s Top 3 Trades Available to Free Subscribers (published Apr 14, 2021

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