UPCOMING (MAJOR) U.S. ECONOMIC EVENTS...
* Wed. Oct. 20 @ 2:00 pm ET - Beige Book Report
* Tues. Oct. 26 @ 10:00 am ET - CB Consumer Confidence
* Fri. Oct. 29 @ 8:30 am ET - Core PCE Price Index m/m Data
* Wed. Nov. 3 @ 2:00 pm ET - FOMC Announcement + FOMC Forecasts and @ 2:30 pm ET - Fed Chair Press Conference
* Fri. Nov. 5 @ 8:30 am ET - Employment Data
* Tues. Nov. 9 @ 8:30 am ET - PPI m/m & Core PPI m/m Data
* Wed. Nov. 10 @ 8:30 am ET - CPI m/m & Core CPI m/m Data
* Fri. Nov. 12 @ 10:00 am ET - Prelim. UoM Consumer Sentiment
* Fri. Nov. 12 @ 10:00 am ET - Prelim. UoM Inflation Expectations
* Tues. Nov. 16 @ 8:30 am ET - Retail Sales & Core Retail Sales Data
* Wed. Nov. 24 @ 2:00 pm ET - FOMC Meeting Minutes
*** CLICK HERE for link to Economic Calendars for all upcoming events.
Friday, February 28, 2020
TPO Profile Price Targets For S&P 500 E-mini Futures Index
The time period I've chosen for this post is two years for the purpose of showing, not only the POC and Value levels, but also the lesser price levels that were hit multiple times that can be used as potential target prices in the event of a further decline, or a reversal to the upside next week (broken white lines).
In Friday's action, the ES plunged down through the POC (2888) and, ultimately, spiked higher to close at 2988, just below the upper edge of the Value Area (3004).
So, those two price levels will be important resistance and support levels in the immediate term. Any sustainable activity in either direction must hold above or below those levels.
The next resistance level is around 3110, while the next support level is around 2790.
Inasmuch as this week's purge brought extremely high volumes, we may be seeing some sort of short-term capitulation, to support a further rally in the ES. However, anything is possible, including a retest of the lows of Friday's hammer before traders come to grips with all accompanying risks, and price direction sorts itself out.
So, trade with caution, as volatility is still alive and kicking!
Price has dropped below 80, as shown on the following daily ratio chart of the SPX:VIX ratio.
If we see a rally in the ES next week, this ratio will need to regain and hold above, firstly, 80, then 100, to convince me that any further strength is sustainable.
Otherwise, a further drop towards 60 will also drag the ES down to, potentially, retest the TPO POC (2888) and Friday's low (2853), or lower to, at least, 2790.