Published to TradingView at 4pm SA time
I mentioned at the top of the week that there may be another opportunity to short/sell. I think we are close to it.
US inflation data coming in higher than expected, sees USD rising. Also noted: U.S. FED FUNDS FUTURES PRICE IN 90% CHANCE OF RATE HIKE IN DEC 2022; 100% CHANCE IN JAN 2023.
As per my research note (pre-market Monday 12/07):
- As noted earlier during last week, the weakness we were expecting emerged during Thursday’s session with the index dropping 73 points (or -1.6%) from the intraday high, creating an opportunity for tactical short-sellers.
- We quickly saw buyers step up, with strong bids off the lows at 4279 to carry the market to new highs of 4361 on Friday.
- Traders should note that this high has note been confirmed by a new high in the RSI , suggesting the potential for another short-selling opportunity at some point this week.
- Our new reference point is 4362, that being Friday’s high, which should hold for the momentum to be sustained.
Sell S&P 500 E-mini Futures at current levels (4372) or conservatively, on a break below the prior day open of 4362
Target range: 4315-4320