ES levels to watch! đź“Š - Thursday Brief

September 07, 2023

Mornin’ traders.

Back with our Thursday brief.

We’ve mapped out some important levels to watch for out there on the ES so let’s jump right into it…

Impact Snapshot

  • Initial Jobless Claims in the US decreased by 13,000 in the week ending September 2.

  • US Dollar Index climbed to fresh multi-month highs above 105.00 after the data.

Market Evaluation

Stocks fell amid concern over how a Chinese ban on Apple iPhone could impact other segments of the American technology industry.

Applications for US unemployment benefits fell to the lowest level since February, adding to evidence of a resilient labor market.

Initial jobless claims decreased by 13,000 to 216,000 in the week ended Sept. 2.

After climbing in the immediate aftermath of the report, two-year US yields fell below 5%.

The US Dollar Index continues to push higher after the initial jobs data and was last seen trading at its highest level since early March at 105.12, rising 0.27% on a daily basis.

European stock markets were lower Thursday, with investors assessing U.S. inflationary pressures and euro zone data.

Asia-Pacific markets were mostly lower on Thursday, following a sell off on Wall Street and as investors assess trade data from China and Australia.

Markets Breakdown

The long term scenario we were looking at since the start of the week Here played out after sellers took control and successfully broke out from the 4-day balance which saw continuation bellow.

As we’ve mentioned before, the most pivotal level to watch was the 4500. Once the price found acceptance bellow it with no attempt to claim it back at the RTH session, the market was already committed to the trend.

The market started selling out the gate at the NY open with the downside break building up volume, adding further confirmation to the scenario we were looking.

The RTH session did not close the ON inventory gap which is a clear indication of weakness.

If price accepts into a balance area rage, it’s likely to revert to other side of balance.

We broke a 7-day range which would see us test the lower end of the distribution once we’ve found acceptance bellow.

The ON session plan we’ve posted yesterday was seeing the targets to look for the bears here. Our final target was the lower edge of the range bellow at 4458.

The 4489/4469 targets on the bearish scenario, momentarily attempted to stall the downside.

The attempt to push the prices further down the 4458 saw a rejection which pulled back above to the previous level range of 4458/4469.

Observe the candle’s wick at the bottom and how the body closed back up. 

Bearish Openings: When a market opens below a selling spike, day timeframe sentiment is extremely bearish, as is the case with this move on ES. When ES opened below the spike, traders were alerted that the previous day’s selling spike was leading value. This is why on our Twitter posts we constantly mention “monitor if the closing strength will carry over”.

The eventual development of a selling Trend day exhibited the clear acceptance of lower prices. 

ES

The higher timeframe targets we are looking until Friday’s close are these zones of interest.

Bulls have to start reclaiming some of the major pivots and try to find balance while bears see further downside continuation towards the previous ranges.For the intraday targets we’ve posted on Twitter(X) look at this post Here.

  • Main pivot: 4458

  • Upside Levels: 4485/4494/4501

  • Downside Levels: 4440/4425/4393

That wraps up today’s brief.

We’ll be back with our big Sunday report.

Enjoy the rest of your week!

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