/ES (S&P 500 futures) has just hit what I referred to (and added to the 60-minute chart back on July 26th, 1st chart below) as my “next downside target 1 following a counter-trend rally off yesterday’s tag of the QQQ & /NQ targets” target.
ES-60m-July-26th
ES 60m Aug 1st
Bearish/bullish/short/long/etc… Confusing, right? Basically, I had recently highlighted both /NQ & QQQ hitting their respect downside swing targets (along with /ES hitting the 5441 target on my 60-minute charts), which would the initial targets where the odds were very good for a swing tradeable bounce & as such, time to cover shorts & reverse long to game the bounce. I listed two bounce targets on /ES (and comparable targets on /NQ & QQQ), with that 2nd & final target on /ES being hit yesterday (along with comparable /NQ & QQQ targets), providing an objective short entry just before & after yesterday’s open.
ES 60m Aug 2nd
FF to today & while the Q’s cut through the first couple of support levels that were highlighted as likely to produce a small bounce for active traders, /ES has now fallen to, hit & (so far) reversed right off that next downside swing/trend target of 5376.50ish with QQQ also falling to that 449.70 support/target on my daily chart. Updated 60-minute chart above, QQQ daily chart below.
QQQ daily Aug 2nd
Bottom line: While the market certainly seems to be getting to that “P.O.R.” (point-of-recognition) that I’ve been predicting, & as such, could very well smash right down through these support levels on the way to the next targets, as with the initial tag of each price target, the odds for a reaction are elevated until & unless that (these) targets are clearly taken out.
Unless these key support levels/targets are clearly taken out soon, I will follow up with some bounce targets asap for active traders looking to game another bounce. Long-term swing & trend traders might opt to ignore developments on the intraday charts & focus on the longer-term chart while sticking to your trading plan.