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S&P500 (ES) Tries Holding Last Week’s 2022 Low

S&P500 (ES) Tries Holding Last Week’s 2022 Low

Posted October 10, 2022
Darren Chu
Tradable Patterns

The S&P500 (ES) is trying to hold last week’s fresh 2022 low after having given up all of last week’s first half gains.  Although ES appears vulnerable to following the Nasdaq100 (NQ) in forming a fresh 2022 low, odds are rising for a multi-week bounce, where any break above downtrend resistance (on the daily chart) will dramatically increase the likelihood for a retest of the psychologically key 4k whole figure level sometime before month end.  Nevertheless, any Dead Cat Bounce in October will likely be weaker in magnitude relative to the late June-late August one.  Near-term bullish catalysts may arrive from any of Wednesday’s US PPI data, the FOMC meeting minutes, Thursday’s US CPI, and Friday’s US retail sales and preliminary UoM consumer sentiment.  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, daily and 4hr RSI, Stochastics and MACD are bottomish.  I am going to stay on the sidelines for now but will look to short on any Dead Cat Bounce back to above the psychologically key 4k whole figure level.  Click here for analysis on NASDAQ100, GBPUSD

Source: Interactive Brokers TWS

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

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