Bias is Bullish, $VIX Below 20 (complacency), Market In New Upward Channel
Today´s Pivot is 5568
In the Sunday Post, I highlighted that the US small caps have outperformed the large caps by a wide margin for the second week in a row, which is the clearest indicator of a market rotation. This is reflected in the recent surge of inflows into US small caps funds as investors are redistributing some of their assets to this market segment. As shown in the chart below, it was the second largest weekly inflow ever.
h/t: IsabelNet
In the OVN session, the ES market gapped up at the open and moved slightly above today´s daily Pivot of 5568. The market then sold off and closed the gap, followed by a move back higher. After some basing at the daily Pivot, the market broke above this area and moved higher to the 5581 level, which is the first upside target as per the analysis in the Sunday Post. See updated hourly chart below. For today, the Buyers must defend today´s Pivot of 5568 for the upside. Once the 5581 level is cleared, the targets are at the 5594 level (daily 20 MA), the weekly Pivot of 5606 and the 5614 level, which are strong resistances and potential turning points. On the other hand, the Sellers must move the market back below today´s Pivot of 5568/the 5565 level for more downside. The targets are at the 5548 level (prior week low), the 5532 level, the 5519 level and the 5509 level, which are strong supports and potential turning points. As always, be very strict with your trading rules and risk management plan.
“Opportunities are usually disguised as hard work, so most people don’t recognize them.” – Ann Landers
PLEASE SEE INTRO POST AND READ DISCLAIMER/INTELLECTUAL PROPERTY