ES!1 Higher or Lower?
S&P 500 Futures
With Quad witching this week, the market has been on a downtrend but reaching weekly demand zone. This could mean that we break lower next week if this does not hold but overall it looks like this will bounce from here. Moving into the hourly chart, ES1! Has repeatedly tested and failed to breach below demand. This could mean that investors are selling their monthly contracts and re-upping or rolling contracts in preparation for next week.
What does that mean for Traders next week?
With AMZN announcing the anticipated date for Prime Day, as well as hitting weekly demand zone, next week could be a ride back up as investors buy stocks at a discount. With elections and other political news to come surrounding the newly proposed stimulus check, we should see a bounce, whether we hit new ATH before elections is unclear but I would expect not to.
This week has been very volatile and red, IMO options traders have invaded the market, and it would take one swift move to knock a lot out, which is what I believed happened this week. Softbank hiked us past $3530 resistance as they bought up 4bil in tech call options, this made investors think someone knew something, therefore buying and making us go higher than anticipated. This last week has been investors taking profits and trading more cautiously until everything calms down.
Tomorrow should be very volatile either way, if you are trading options, I would say be cautious as big money is going to be moving around a lot trying to sell or roll their monthly contracts before they expire. My personal recommendation would be to wait until next week for a clear direction, whether we head back up or dip down lower.
With Quad witching this week, the market has been on a downtrend but reaching weekly demand zone. This could mean that we break lower next week if this does not hold but overall it looks like this will bounce from here. Moving into the hourly chart, ES1! Has repeatedly tested and failed to breach below demand. This could mean that investors are selling their monthly contracts and re-upping or rolling contracts in preparation for next week.
What does that mean for Traders next week?
With AMZN announcing the anticipated date for Prime Day, as well as hitting weekly demand zone, next week could be a ride back up as investors buy stocks at a discount. With elections and other political news to come surrounding the newly proposed stimulus check, we should see a bounce, whether we hit new ATH before elections is unclear but I would expect not to.
This week has been very volatile and red, IMO options traders have invaded the market, and it would take one swift move to knock a lot out, which is what I believed happened this week. Softbank hiked us past $3530 resistance as they bought up 4bil in tech call options, this made investors think someone knew something, therefore buying and making us go higher than anticipated. This last week has been investors taking profits and trading more cautiously until everything calms down.
Tomorrow should be very volatile either way, if you are trading options, I would say be cautious as big money is going to be moving around a lot trying to sell or roll their monthly contracts before they expire. My personal recommendation would be to wait until next week for a clear direction, whether we head back up or dip down lower.
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