The ES played extremely well off our Action Levels yesterday, as two decent sell opportunties led to moves of 12 and 9 points. Given yesterday’s relatively quiet trading day, we could see another explosive breakout/trend day upon us. Let’s take a look at the levels to watch for today’s trading.
Breakout Ahead?
The E-Mini S&P 500 built out a clearly-defined consolidation throughout yesterday’s trading – which was to be expected after Friday’s wide range of price movement. The fact that the consolidation has formed at lows is indicative of another wave of selling pressure.
Add to this the fact that an Inside Value relationship has formed in the Camarilla Equation, and we could see a breakout very soon from this range. If price opens beyond 1,057 or 1,071, we could see a very nice move in the direction of the gap – although a bearish break is the most likely option.
Action Levels
If price opens at or below 1,060, I will be looking to see any pull-back from 1,060.25 to 1,064. This range encompasses key pivots from the pivot range, the Camarilla Equation, and the Value Area.
Since we are currently in a near-term downtrend, a pull-back to this zone should be sold, especially if price opens beneath this range.
The next major pivots below current price are at 1,055.75 and 1,043, which represent the H3 Cam level and the bottom of the pivot range, respectively, for the month of July.
If 1,055.75 gives way, we could see a drop to 1,043 ahead. While we may not reach this support level today, this should be a target to keep an eye on.
There’s also a naked VPOC down below at 1,039.
These are my levels to watch for today’s trading action – let’s see what happens!
Cheers!
Frank Ochoa
PivotBoss.com
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