Market Outlook 07/30/2021
Moment of truth is near. The earnings of big 5 tech companies is now in the rear view mirror and even with earnings above expectations most of them (except GOOGL) are trading below pre-ER prices.
AMZN earnings after close on Thursday was the last straw. Markets trading lower in the overnight session but still above Tuesday lows which is the ket decider.
/ES made another all-time-high on Thursday in-line with negative divergence. /ES is still above 20 Day MA which is the first target for bears on Friday
Intraday /ES needs to hold under the resistance zone 4397-4404. A peek above 4404 will prove really costly to bears. To the downside, /ES 4358-64, /ES 4344-47, and /ES 4322-30 are the levels to watch. Bulls need a close above /ES 4358 to prevent balancing tilting slightly towards the bears
Bearish Divergence at /NQ channel top looking to gain control for Friday as /NQ is back to 20 Day MA levels.
Shorter term /NQ finally starting to join the bearish sentiment as is breaks below trendline in the overnight session. Bears need to hold /NQ under 14900-940 for a likely retest of 14700 and much lower levels.
/RTY 2182-92 is the major support for bulls to hold for another attempt at 50 Day MA in 2250s. A break below 2180 opens up 2150s for /RTY on Friday.
Market Levels will be published in a separate post for 07/30. It can be access here.