Hello Everyone,
Quick Note: The SPX displayed strong downside momentum (from contraction comes expansion) late last week and ended near the lows as it spent much of Friday consolidating into a bear flag intraday. So for Monday, likely to see some lower levels tested prior to a bounce attempt early next week (market tends to bounce into FOMC meeting as well as VIX expiration). The SPX remains under distribution and thus will be quite difficult to run up and fill Friday's open gap right away. Key level for next week will be 4000-4020 with 3950-70 acting as initial strong resistance. My current expectation for next week is that the SPX prior lows (3810) will be revisited unless bulls can reclaim 4020. Under this view, those who have remained hopeful may begin to capitulate and throw in the towel which in turn may in turn lead to another rally attempt later but let's remain focused on what's directly in front of us and those levels.
ES Support is 3900 then 3860ish 3810 3720-40 with Resistance 3960 4000-20
Please take a moment to look at the trade ideas.
