ES $1280.00 level is important for any lasting short squeeze to occur...one that has staying power above ES $1280
my reasoning for this $1280 horizontal watch level is NOT based on BBands or moving averages ... it is based on the simple sequence of lower lows during the decline sequence since last week:
ES lower lows sequence during Friday June 1st:
1280
1278
1276.25
1276
1275.50
1273.50 -took place during the cash market close to the futures settlement
today's overnight session:
1268
1264
1262
today's day session low, as of 3:11 pm edt, June 4th Monday
1265.25
--------------------
today's SPY downside violation of its 200day sma was relatively brief with a duration of a few hours, and price action is now trying to hold the reversal back above the 200day sma
this daily SPY chart will be fully visible only to those of you with a stockcharts.com extra level subscription
* also notice the mid-January pullback low was tested by today's $127.14 low and this provided immediate support on this first test taking place today ... test #1 which immediately is proven by actual price action represents a valid support level is confirmation the horizontal level is valid support ID, until later proven otherwise...multiple tests that occur is usually "proof" that it is NOT valid support, so any test #2 will not bode well for the level to later hold ...bulls do not want to see a test #2 occur
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the SPX weekly closes chart showing the $1268.45 horizontal inflection level for the cash index compliments the SPY chart
my reasoning for this $1280 horizontal watch level is NOT based on BBands or moving averages ... it is based on the simple sequence of lower lows during the decline sequence since last week:
ES lower lows sequence during Friday June 1st:
1280
1278
1276.25
1276
1275.50
1273.50 -took place during the cash market close to the futures settlement
today's overnight session:
1268
1264
1262
today's day session low, as of 3:11 pm edt, June 4th Monday
1265.25
--------------------
today's SPY downside violation of its 200day sma was relatively brief with a duration of a few hours, and price action is now trying to hold the reversal back above the 200day sma
this daily SPY chart will be fully visible only to those of you with a stockcharts.com extra level subscription
* also notice the mid-January pullback low was tested by today's $127.14 low and this provided immediate support on this first test taking place today ... test #1 which immediately is proven by actual price action represents a valid support level is confirmation the horizontal level is valid support ID, until later proven otherwise...multiple tests that occur is usually "proof" that it is NOT valid support, so any test #2 will not bode well for the level to later hold ...bulls do not want to see a test #2 occur
the SPX weekly closes chart showing the $1268.45 horizontal inflection level for the cash index compliments the SPY chart
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