Market Outlook 02/12/2021
Another day.. another standstill in markets. Bears made some inroads in the morning on Thursday but couldn’t sustain the pressure till close going back to neutral zone for /ES in 3897-3908.
Weekly close is now extremely critical from the technical side. Technical shorts would want a /ES close under 3880 to form a shooting star candle. Bulls have an easier task at hand to manage a close above 3910 to warrant upside extension on longer timeframes.
/RTY showed relative weakness on Thursday after an +18% bounce from lows of last week. It was the only one to breach Wednesday’s lows on Thursday
The spring bounces over the last 2 days in /ES opens up the likely possibility that /ES needs to retest higher levels into 3914-3921 even if the eventual direction is downwards for Friday. The /ES expectation chart from yesterday is holding up well to match the hypothesis. There are some trapped buyers over 3914s over the last 2 days which will make it a fair fight in the 3914-3921 zone.
The downside bias is negated if /ES can manage a close above 3922 on Friday.
DAX holding up 13800s is another positive sign for the bulls
The channel top in all indices are holding for now
/ES
/RTY
/NQ
Watch for signs of weakness in /RTY as a precursor to weakness in /ES as we return back to better negative correlations between them. /RTY resistance zones are 2273-2277 and 2291-2296.
/NQ was the strongest index on Thursday and is likely to carry some strength into Friday as expected relative weakness continues with /RTY making lower highs and lower lows.
/ES Market Levels 02/12
3946-3953 (Top of possible range)
3928-3933 (All Time Highs)
3913-3921 (Breakout target, Likely Reversal Zone, Key Levels: 3914 and 3919)
3897-3904 (Intraday Line in sand, Bullish above, Bearish below, Key Levels: 3898 and 3903)
3876-3882 (First Breakdown Target, Key Level: 3878,3880)
3861-3865 (Pullback Buy Zone, Previous All Time highs: Key Level 3862)
3822-3831 (Breakdown Target, Pullback Buy Zone)
3805-3813 (Pullback Buy Zone)
3774-3783 (Major support zone)
3756-3760 (Last week lows)
3738-3746 (Major support zone)
3716-3723 (Minor support)
3686-3694 (Breakdown target, Pullback buy zone)
/NQ Market Levels 02/12
13820-13844 (Top of possible range)
13735-13756 (Breakout Target)
13674-13698 (Intraday Line in sand, Bearish below, Bullish above)
13557-13585 (First Breakdown Target)
13505-13521 (Wednesday Low, Pullback Buy Zone)
13420-13442 (Breakdown Target, Pullback Buy Zone)
13318-13356 (Minor support zone)
13202-13231 (Breakdown Target)
13110-13132 (Previous all-time-highs, Pullback Buy Zone)
12961-12988 (Major support zone)
12884-12905 (Bottom of possible range)