Be sure to watch for these levels 📊

July 18, 2023

What’s up traders.

This is the first of our new Substack posting schedule so bear with us as we try to find the most opitimal structure of information. Any feedback is much appreciated.

Market analysis every Sunday, Tuesday, and Thursday.

That being said, let’s dive into the good stuff…

Market Evaluation

  • Important earnings of the day: BAC, MS, SCHW, IBKR, WAL, PNC, BK, LMT

  • Tomorrow, we are looking at Housing Starts/ Building permits reports as well as some major earnings of TSLA, NFLX, IBM, ASML, GS which are likely to bring volatility in the markets.

  • Retail sales rose at a slower pace in June, but the pace is still strong enough to keep the economy chugging along—and the Federal Reserve at ease.

  • Results from Bank of America Corp. and Morgan Stanley bolstered bank shares and a rally in stocks linked to artificial intelligence resumed.

The Day Ahead

On Monday’s ON session for ES, we emphasized the level of 4530 as a key area to look for holding above, which would bring continuation to the upside. After sellers made several attempts to push the prices below, they didn’t succeed which lead to a reversal to the upside continuation with a clear breakout above 4538/4555 that lead to another new year high.

We were updating the whole session live on Twitter as well, find the post HERE.

This week isn’t filled with extreme volatile news reports so we remain to see if the continuation occurs to the upside and continuing to develop new year highs or a pullback to retest the major supports we are looking at. We also pay close attention to U.S. Dollar as it hovers near 15-month lows after mounting expectations the Federal Reserve is set to wind down its hiking cycle.

Market Breakdown

On the Overnight session, ES saw a pullback to a zone we showcased as a potential support for the range, around 4546 which was today’s pivot as we observed the strong reaction once we entered that level. After sellers failed to break bellow, strong buying side volume entered the market to take it to new year highs at the RTH open. Bulls managed to push the prices into another year high. Our main pivot that we’ve posted on twitter was 4546 which acted as the absolute bottom of this leg up, with the first target of 4570 being hit which will play the pivot for the rest of the session as it successfully served as a re-test after being flipped. Follow us on Twitter for the early (ON) targets and watch live updates unfold us we update the zones once the PA reaches our areas.

The targets we look for until NY close:

  • Main pivot: 4570

  • Upside Targets: 4585/4594

  • Downside Targets: 4565/4558/4546

These are the levels to pay attention until the close. All the continuation levels on HTF targets can be seen on this chart here. As always, we place the levels and watch for reactions.

Disclaimer: Futures and options trading carries a significant level of risk and may lead to substantial financial losses. The content provided in this newsletter is solely for informational purposes and should not be construed as a trade recommendation or financial advice. It is essential for readers to independently assess and make their own investment decisions, taking into consideration their personal financial situation and risk tolerance.

That’s all we got for you. Stay tuned for the next one Thursday, and our big Sunday report later this week.

Cheers!