I will be looking for /ES to touch between 3677 and 3687 (small red zone on chart) in the not-so-distant futures, and then 3748 and 3787 (large red zone on chart) after that at some point. These zones were found using the daily chart, so keep the index levels in context with that. For example: an hourly chart zone might hit within a day or two. A 15 min chart zone might hit that same day… etc. etc.
Anyway… here’s the chart.
The small red zone that marks the area between 3677 and 3687 becomes invalidated if 3542 is broken to the downside. The larger red zone that marks the area between 3748 and 3787 becomes invalidated if 3225 is broken to the downside. In my opinion, I do not see the market dropping all the way to 3225 anytime soon. However, my opinion, of course, is just that – an opinion. But it would take some pretty negative “things” to happen to fall that far I think.
This, of course, is barring any negative news. There is some uncertainty still surrounding the next stimulus package. I still believe the market is waiting on that. The positive vaccine news of late, and the hopes of stimulus, have kept this market moving upwards. The election and the subsequent balance of power that was shaping up, definitely gave it a boost in early November. But now, I believe all eyes are on stimulus and vaccines.
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