ES Weekly Levels (Nov 6-10)

ES starting the week trading back at the bottom of the channel. The lower trendline of the channel should act as resistance. Most market participants expect a pull back here or at least a pause. First upside target is the Aug 17th low. First downside target is the 55 ema. Below the 55 ema look for a move back to the 200 SMA.

SUMMARY

• ES finished the week with a gain of 5.85 % after trading in a range of 244 pts.
  
• ES has had a massive reversal from the Oct 27th low. Gaining 6.2% (257 pts) in 5 trading days
  
• Price has reclaimed the 9/21/55 emas as well as the 200 SMA
  
• ES is back above the Feb 2nd breakout point.
  
• Positive reaction to both FOMC rate pause & NFP
  
• 10year yields have dropped from 5% down to 4.57%
  
• Entering the most bullish quarter of the year
  
• All sectors ended the week green led by XLRE & XLF.
  
• Potential catch up move for small caps and growth names
  
• Light week of econ data ahead but many Fed Heads speaking
  
• Earnings will be dominated by small cap growth names this week.
  
• Follow through confirmation required to see if the recent rally is more than heavy short covering.