Market Analysis for Dec 7th, 2022
Overnight ES rejected at 3954 against the trending resistances. As of writing, price tested against the important 3912-3920 support and bouncing back into 3930s on first try basis.
After the RTH open, watch for 2 scenarios to execute
1) break and hold below 3912-3920, opens downside continuation into 3885/3865/3850 (trend day)
2) unable to break 3912-3920, opens oversold bounce to backtest 3950/3960/3980 resistances (range day)
Remember, it’s been 4 days down consecutively and yesterday got into extreme oversold territory That means where the countertrend bounces get rejected will be telling.
Context from last night: https://www.elliottwavetrader.net/trading-room/post/8207853
Intraday trading parameters:
- Short-term remains bear biased given the breakdown below 4000 weekly LIS
- Key levels tomorrow will be 3960/3980 trending resistance and 3912-3920 support to scalp against
- Biggest concern we need to be aware of is a potential rangebound day if cannot take out 3920-3912after RTH open
- Break below 3920-3912 opens 3885/3865/3850 immediately