Market Outlook 09/06/2021
Starting back after almost a year and the markets have completely changed. Comparing Daily charts for broader markets, we saw a perfect reversal from /ES 200 Day MA after almost a 600 point rally from 3700s.
Red backgrounds show the bias continues to be bearish on daily timeframes as well and will continue to stay that way until daily close above the levels indicated by the thick red line in the chart above
Red Line Levels:
/ES: 4006s
/NQ: 12440s
/RTY: 1864s
Intraday Outlook for /ES
Looking at Intraday charts for /ES, expect rallies to be sold into until hourly close above the line in sand level in lows 3960s. Line in the sand zone for /ES is 3961-3973 for Tuesday. Intraday bias will switch bullish on hourly close above 3974 and likely target 4006-4022 larger timeframe level.
To the downside, /ES 3900-05 continues to be the larger support zone coinciding with Friday’s lows. But a failed breakdown buyers would want a snapback rally from 3880-3888. This is the zone for quick scalping. However, breaking below 3880 should likely flush down with higher volumes and trigger the next selling leg into low 3800s. Minor support zone on the way is 3853-58 but larger targets are 3790-3806.
Events
Services PMI and ISM Data to be released on Tuesday morning likely the cause some volatility and likely direction setting for intraday move.
The biggest event for the week is ECB Interest Rate decision on Thursday morning where a bigger than expected rate hike will cause volatility in US overnight markets.