The first week of 2019 proved to be quite interesting as the ES bounced around above the weekly pivot eventually pushing into the weekly resistance t/f zone. It’s almost like those levels I place on the chart have some mystical significance, as price is drawn toward them. Nope, just mathematical calculations of the high, low and close.

This week I would look for the ES to continue up into more significant resistance displayed on the chart below. The new yearly pivot is at 2591, the Equilibrium! The monthly pivot range is quite expansive, which is why the previous month’s test/fail level is now a key resistance zone and the weekly zones provide the best trade setups. Good Luck & Trade Safe!

Last week the ES came into support at the weekly test/fail zone, and remained above the yearly support test/fail zone. A retest of this level in the future is possible, but not guaranteed. This level was enough to provide the largest relief rally since the 12/3 high at weekly & monthly resistance. It also created a daily pivot shift trend change. Should the short term uptrend continue the resistance levels to watch are the weekly test/fail zone and the previous monthly support test/fail breakdown level.

Trade Safe  & Happy New Year!!

The ES continues to test and fail at the weekly and monthly support levels as it breaks below the yearly pivot, and is now on a path toward the yearly support test/fail zone at 2306/2252. The holiday shortened week probably won’t provide much of an opportunity to trade. The chart below displays the key pivot zones. Good Luck & Trade Safe!

Merry Christmas!!

Last week the ES traded into support at the WTFZ, then rallied into the weekly pivot and reversed back to the WTFZ. The ES chart displays a weekly/monthly/yearly pivot confluence of support. This level should hold up, but I would caution when then level fails the door is open to much lower prices. See the SPX daily chart below for the key monthly pivot zones.

This week a similar setup looks probable. If the ES holds support at the WTFZ then I expect a weekly swing trade to cross above the weekly pivot and test resistance at the WTFZ. Any failure at the weekly pivot and MTFZ would be cause for concern, and that would bring the W/M/Y pivot confluence support into play as the key level to watch.

Just a note to those following along. While I provide potential support and resistance pivot zones, the key is how price reacts at the zones, and do you have an intraday or daily buy or sell signal. This blog is more for informational and educational purposes only and buy/sell signals are not provided.  Good Luck and Trade Safe.

ES ~ Weekly Trade Setup

SPX ~ Monthly Pivot Zones

The ES is once again testing the monthly support test/fail zone. I am still expecting this level to hold with a year end rally, with caution advised. Looking at the ES chart below the weekly support test/fail is just below the MTFZ. This would provide support for the monthly test/fail scenario. If it holds, a swing long would be in the cards, if it fails the yearly pivot is the last resort support before a potential crash scenario. Good Luck & Trade Safe.

Monday’s gap up took the ES just above the weekly resistance test/fail zone, and failed to hold. This set up a weekly short swing trade that broke through the weekly pivot and down to the weekly support test/fail zone. Observe the weekly and monthly support confluence, if this level holds, it should set up the swing long into the monthly resistance test/fail zone. Year end Rally or Bust? Good Luck & Trade Safe

The ES held above the weekly/monthly support zone, and is now in a monthly swing long. Looking for the minimum resistance target at the monthly test/fail zone 2833/2855. Good Luck & Trade Safe.

The question is, will this yearly pivot pattern in Crude Oil repeat? It is amazing how these pivot patterns play out in similar fashion on every time frame. The weekly CL chart below displays the potential pattern as a failed yearly test/fail resistance breakout, with a downward swing below the yearly pivot and holding at the fibonacci .236 support pivot. Just as it did in 2011. Take a look, and lets observe to see how this plays out. Trade at your own risk.

The Daily CL chart displays the monthly pivots, price is at the pivot exhaustion support zone.

The ES is entering key weekly and monthly confluence support. I am expecting, but not certain, this level of support will hold and provide the launch pad for a monthly swing long. This is the last week of November, so look for the December test/fail zones to contract. If the weekly/monthly confluence level fails, along with the yearly pivot, then I will reevaluate and provide lower support levels. Good Luck & Trade Safe

Follow Next Wave on
January 2019
« Dec