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S&P500 (ES) Weekly Doji Tries Forming Just Below Key 4K Level

S&P500 (ES) Weekly Doji Tries Forming Just Below Key 4K Level

Posted March 3, 2023
Darren Chu
Tradable Patterns

S&P500 (ES) Weekly Doji Tries Forming Just Below Key 4K Level

The S&P500 (ES) is consolidating after yesterday’s bounce, but remains wobbly going into next week with a weekly Doji trying to form just below the Oct-Feb uptrend support (on the weekly chart).  Any weekly close below the psychologically key 4k whole figure level would reinforce the idea that the slightly higher February high versus the January and December highs was a bear trap.  Before bears get excited, ES would need to slide below the January low, which now has moderate odds of occurring before mid March.  Watch for volatility following today’s 10am EST US ISM services PMI.  The escalation in the Ukraine-Russia conflict deserves close monitoring.  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 somewhat bottomish weekly and daily RSI and Stochastics are being weighed on by the negatively sloping weekly and daily MACD.  I am looking to enter short in the red zone (of the daily chart), targeting the green zone for Thursday.  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, NATURAL GAS

Source: Interactive Brokers TWS

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