Alex's daily Market update & Focuslist - 01/18
Market under pressure, as expect. Now the real test begins! (2)
GENERAL MARKET ANALYSIS
S&P500 (ES_F) Daily
Price Action Analysis:
As we were expecting and discussed in the last few days, this market was due for a pullback or at least some pause to digest the recent gains and breadth excess. We had that again today, and we might also see it in the next sessions.
ES_F opened strong and tried but failed to breakout of the 4016$ level at the open…creating yet another false breakout (2 in 2) and a beautiful bull trap.
Selling pressure then came very hard, and we came to retest the 3973$ & 3964$ levels. I was watching closely for a potential support area. Unfortunately, after a feeble bounce, we could not hold and undercut it at the end of the day to close almost on the lows of the day’s range… and on above-average volume.
The 50dma also didn’t hold.
In all honesty, I was not expecting that big of a rejection, especially of the real first rejection candle. We are now below 3964$ and the 50dma, which is not good IMO.
If we want that pullback to remain healthy, we’ll want to see the volume cooling off and the price holding the 3898/3918$ area.
On the upside,
3973$ & 3964$ levels will act as potential resistance on a retest.
The 10 & 50dma are also potential resistance.
On the downside,
3898/3918$ area, and the 21dma as well.
NASDAQ (NQ_F) Daily
RUSSELL 2K (RTY_F) Daily
In the following sections of tonight’s letter, I’ll cover essential parts of my daily routine & preparation for tomorrow’s trading session.
✅ My overall current market Takeaways & GAMEPLAN for tomorrow
✅ My daily Focuslist, including setups, alert levels & explanation (LONG/SHORT)
✅ My Portfolio update
✅ Sectors Review
✅ Market Breadth & Internals
✅ Economic Calendar
✅ Prime Model spreadsheet (PT_database)
✅ Leaders list (technicals, fundamentals & potential TMLs)
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