The ES1! Weekly chart's Dark Cloud Cover (as expected) ruined the early week bull rally and clocked a lower low at that (see the daily chart on the right panel for corroboration). The consequent weekly candle gives a bearish technical outlook with some commitment. The weekly RPM and MACD are both with bearish crossdown. Furthermore, the Net Non-commercial Interest is short and increasingly short (in the prior weeks). The Top 8 Traders are still net short, albeit not increasingly short.
These form a picture of downside volatility and momentum for the coming week, looking for 3600, at the support of the megaphone widening wedge.
The Daily chart on the right panel shows the engulfing breakdown late week and the technicals suggest enough momentum to follow through after an early week (and first day of the month) bounce.
Watch out for the 3785 Lower Low breakdown level as it could "fall off the cliff" once it punches below 3785... particularly so when the Non-Farm Payroll numbers are due out on Friday.
Stay safe the week ahead!
These form a picture of downside volatility and momentum for the coming week, looking for 3600, at the support of the megaphone widening wedge.
The Daily chart on the right panel shows the engulfing breakdown late week and the technicals suggest enough momentum to follow through after an early week (and first day of the month) bounce.
Watch out for the 3785 Lower Low breakdown level as it could "fall off the cliff" once it punches below 3785... particularly so when the Non-Farm Payroll numbers are due out on Friday.
Stay safe the week ahead!
