Topping Is A Process

In my premarket video this morning I was looking at key support and resistance to define what we were likely to see on SPX this week. Resistance I put at the new weekly pivot at 2907.7. ES was opening the week below this and if that held as resistance, then this swing high might be behind us. That has not held as resistance, ES is back above it, at 2910 at the time of writing, and WP is currently holding as support. This opens a very possible retest of the 2019 high and likely at least marginal higher high above that.

ES Jun 60min:

Support is at the always important 50 hour moving average, currently in the 2890 area and strong support through April so far.

SPX 60min chart:

Just below that is the open breakaway gap from 2888.32, tested multiple times since the breakaway gap up on 12th April and holding so far. On a fill of that gap rising wedge support from the March low is now in the 2875 area. SPX 15min chart:

On the bull side I have a strong stat that I called at the start of February, on the break back over the SPX monthly middle band, looking for a retest of the all time high. That doesn't need to be done right now, but obviously SPX is not far away from the all time high at 2940.91. On the bear side the clear rising wedges from the December low on SPX and ES have both broken down, there is negative divergence almost across the board of US indices and a daily RSI 5 sell signal on ES has already fixed.

Stan and I are doing a webinar an hour after a close on Wednesday that is the next in our series on trading commodities. If you'd like to attend you can register for that here, or on our April Free Webinars page.