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S&P500 (ES) Testing Weekly Chart Downchannel Resistance

S&P500 (ES) Testing Weekly Chart Downchannel Resistance

Posted April 4, 2023
Darren Chu
Tradable Patterns

S&P500 (ES) Testing Weekly Chart Downchannel Resistance

The S&P500 (ES) is consolidating after gaining 4 straight days, hesitating as it bumps against the weekly chart downchannel resistance.  Odds are now moderately high for a retest of the August high in April.  Before bears get excited, they’ll need to see a daily close this week below the psychologically key 4k whole figure level.  Regardless of how ES appears poised (for now) for a bullish April, volatility will likely surge this week beginning today following the 10am EST US JOLTS job openings, Wednesday’s US ADP non-farm employment change and ISM services PMI, Thursday’s US unemployment claims and Friday’s highly anticipated US Non-Farm Payrolls (NFP).   Congratulations to paying subscribers who benefited from the Oct 18, 2022 analysis highlighting the early stages of a month plus Dead Cat Bounce, or from the February 18, 2020 analysis one day before the record high in the ES, warning of the pending slide in the S&P500.  The weekly and daily RSI, Stochastics and MACD are bottomish, rallying or consolidating recent gains.  I am looking to enter short in the red zone (of the daily chart), targeting the green zone for Monday.  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 VIX, NATURAL GAS

Source: Interactive Brokers TWS

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