ES Historical Resistance Won the Battle 7/23/2020
ES at the 4 hour view.
The red line is the historical resistance. It stopped the ES back on June 05-09. It stopped the ES again this week. Had it not held, the next resistance would've been 3330 which was the February gap.
I was getting a little worried there since the resistance was starting to breakdown. However, it held in the end. I am not confident that this resistance will hold for a third time.
VIX and VVIX was giving a warning for the past few days about a pullback. Well, the pullback came.
Keep in mind. With high liquidity levels, supports below may be stronger than traders think. I am not expecting another March 2020 crash at all. Market internals are stronger now than in late February.
Besides, here is a critical thinking question. How many shorts/bears do you think are trapped below? How many of them are waiting to get out of their underwater shorts? That's why I think there may be a bounce from below.
The red line is the historical resistance. It stopped the ES back on June 05-09. It stopped the ES again this week. Had it not held, the next resistance would've been 3330 which was the February gap.
I was getting a little worried there since the resistance was starting to breakdown. However, it held in the end. I am not confident that this resistance will hold for a third time.
VIX and VVIX was giving a warning for the past few days about a pullback. Well, the pullback came.
Keep in mind. With high liquidity levels, supports below may be stronger than traders think. I am not expecting another March 2020 crash at all. Market internals are stronger now than in late February.
Besides, here is a critical thinking question. How many shorts/bears do you think are trapped below? How many of them are waiting to get out of their underwater shorts? That's why I think there may be a bounce from below.