6/6: Daily Recap, Outlook, and Trading Plan

Recap

In the past few days, we've seen an extraordinary 110-point long and one of the more significant trades of the year. We are now up 120+ points in two days, and the pullback risk is high. Yesterday's action was highly trappy and complex, fitting the description of a post-trend period. We are now in a strong uptrend, which will remain the case for the foreseeable future.

The Markets Overnight

🌏 Asia: Mostly down
🌍 Europe: Down slightly
🌎 US Index Futures: Down slightly
🛢 Crude Oil: Down
💵 Dollar: Up
🧐 Yields: Up a bit
🔮 Crypto: Down

Key Structures

The 4243-37 area is the first and foremost zone to watch, acting as a loose support zone.

The blue broadening formation pattern has now broken out and is currently acting as support in the 4280-90 range.

The new pink triangle pattern would be one to watch, but support must fail at 4200 for bears to take control.

Support Levels

• 4278-80 (major)
  
• 4267 (major)
  
• 4254
  
• 4243-37 (major)
  
• 4222 (major)
  
• 4213
  
• 4204
  
• 4190-95 (major)
  
• 4176
  
• 4171 (major)
  
• 4161
  
• 4154 (major)
  

Resistance Levels

• 4288 (major)
  
• 4307
  
• 4317 (major)
  
• 4326 (major)
  
• 4337
  
• 4347-52 (major)
  
• 4358
  
• 4366
  
• 4380-85 (major)
  
• 4400-4405 (major)
  

Trading Plan

📈 4267, and 4245-37 are support zones.
💪 Bulls must defend the 4243 zone to keep the direct breakout from last week in play.
📉 Bears' case begins on the fail of 4267. Watch for possible short-side reactions at 4317 major resistance.

Wrap Up

We are in a post-rally chop phase, and our focus should be on reacting to the plan outlined above. As long as 4278-80 holds (4267 on any quick flushes down), we can retest 4307, 4317, and then perhaps try another dip. A failure at 4278 is the first warning for bulls, with a 4267 fail triggering a sell down to 4243.

Disclosure: This is not financial advice and is for informational purposes only. Please consult a professional financial advisor before making any investment decisions.