Market Outlook 05/24/2021
Another week in markets with long downside wicks in monthly charts showing the presence of buyers on dips but a balance zone at current price levels. While /ES worked to close above 10-wk MA, /RTY and /NQ closed under 10-wk for the second consecutive week highlighting the relative strength on /ES over the last few weeks and rotation continues out of growth in value stocks.
/ES tagged 50 Day MA and staged a strong rally to peek above 20 Day MA but failing to capture at close on Thursday and Friday simply highlighting buyers at lower prices but some equilibrium at current price levels.
Even though VIX is still around 20, the RTH ranges for markets haven’t been correspondingly wide. /ES 4164-4173 zone is the first resistance zone for Monday and breakout above has some open space till 4180s. However until broken out, assuming a bearish bias is more prudent under current conditions.
Support for /ES at 4120s and 4100 zone for Monday. A push into 4080 will be hitting range extreme levels.
Similarly /NQ also peeked above 20 Day MA on Friday only to close back under it (and even under 50 Day MA). A low volume grind up for /NQ should retest 12500s before any intraday reversals.
Shorter term /NQ is at extremely interesting levels. On one hand, it is in the process of forming a bear flag on this drop from highs. On the other hand, /NQ broke above the trendline from highs and is holding on retest in the overnight session. /NQ under 13350s should bring some more sellers into it and holding above 13420 gives an edge to the bulls for a move into 12500+
The balancing move in /RTY since March has its 20 Day and 50 Day MAs in a small range with /RTY following the pattern of testing 20 Day MA on Friday and closing below it.
Shorter term /RTY is forming a wedge which is getting close to picking a direction soon. Upside resistance for /RTY in 2240-46 and 2269-78 zone. Breaking above should have targets in 2300+ zone.
/ES Market Levels 05/24
4285-4294 (Major Resistance Zone)
4262-4271 (Major Resistance Zone)
4238-4244 (Minor Resistance Zone, All-time-highs)
4209-4216 (Major Resistance Zone)
4194-4198 (Major Resistance Zone)
4176-4182 (Major Resistance Zone)
4163-4172 (Intraday Line in sand - Bullish above and Bearish below)
4136-4142 (Minor Support Zone, First Breakdown Target)
4120-4123 (Minor Support Zone, Second Breakdown Target)
4098-4106 (Major Support Zone, Possible Reversal zone)
4071-4084 (Major Support Zone, Likely Reversal zone)
4038-4049 (Major Support Zone, Pullback Buy Zone, Medium Term Pullback Target)
4018-4026 (Minor Support Zone)
3987-3999 (Major support zone, Pullback Buy Zone)
3972-3979 (Major Support Zone)
3956-3964 (Major Support Zone)
3931-3934 (Major support zone)
/NQ Market Levels 05/24
14440-14465 (Major Resistance Zone)
14277-14298 (Major Resistance Zone)
14222-14238 (Minor Resistance Zone)
14141-14174 (Major Resistance Zone)
14040-14068 (Major Resistance Zone, All-Time Highs)
13900-13932 (Major Resistance Zone)
13812-13842 (Major Resistance Zone)
13763-13781 (Minor Resistance Zone)
13688-13707 (Major Resistance Zone, Likely Reversal Zone, ReTest of Breakdown)
13621-13639 (Minor Resistance Zone)
13548-13574 (Minor Resistance Zone, Breakout Target, Bear Flag Top)
13460-13490 (Intraday Line in sand - Bullish above, 50 Day MA)
13380-13410 (Intraday Line in sand - Bearish below)
13310-13331 (Major Support Zone, First Breakdown Target)
13247-13266 (Major Support Zone, Second Breakdown Target, Possible Reversal Zone)
13130-13158 (Minor Support zone)
13060-13083 (Major Support zone, Bear Flag Bottom)
12949-12967 (Minor support Zone)
12875-12920 (Major Support Zone, Pullback Buy Zone, Likely Reversal Zone, Last week’s Low, Medium Term Support Zone)
12801-12822 (Major Support zone)
12744-12766 (Minor Support zone)
12674-12690 (Major Support zone, Pullback Buy Zone, Measured move Target)
Futures Trade Ideas 05/24
Short /ES on a move into 4171-74 for target 4161 and 4148
Short /NQ on a break below 13310 for target 13270 and 13150
Buy /NQ on a break above 13490 for target 13540+
Buy /RTY on a break above 2232 for target 2241+