/ES (S&P 500 E-mini futures contract) has bounced back to the resistance zone that capped the previous advance & once again, has done so with negative divergences in place. This offers an objective, yet somewhat aggressive short entry here with the next, higher probability sell signal to come on a break below the uptrend line (both trendlines on ES & NQ).

ES 60-min Nov 7th

ES 60-min Nov 7th

/NQ (Nasdaq 100 futures) is once again approaching the resistance zone just overhead where the last advance was rejected. While /NQ could reverse from here, any marginal new high soon (yellow arrows) would be a divergent high.

NQ 60-min Nov 7th

NQ 60-min Nov 7th

Also, keep in mind that an impulsive & solid or sustained breakout above the recent highs in the $NDX & $SPX will mean that these major large-cap indexes have taken out those key 200-day EMAs as discussed in last night’s video. A solid daily close above the moving averages on both SPY & QQQ would be bullish although by no-means an “all-clear” signal for going long as there are still some significant price & trendline resistance levels overhead for the major stock indexes to contend with.

I am passing along these levels & objective shorting levels for those interested. However, the markets have been in trading in a relatively wide sideways trading range for the past week & may or may not continue to do so going forward. If so, swing trading will remain difficult as the major indices & most stocks gyrate back & forth within the recent ranges.

2+