Bulls Look to Regain Control

With a key rotation at stake.

Technical Edge — 

• NYSE Breadth: 48% Upside Volume

• Advance/Decline: 52% Advance 

• VIX: ~$21.25

Friday started off mixed but the ended pretty strong. That said, we need further proof from the bulls that they can regain control of the price action. That occurs with a key rotation (as laid out below).

This week, we get the all-important CPI report, which has become the most important monthly data point to follow.

A good print likely sends us back up. A bad print and the sloppy, choppy trading can continue. Let’s do the S&P, then some individual names.

S&P 500 — ES 

We got pretty lucky with Friday’s game plan — “look for a reclaim of Thursday’s low (~4078). A successful reclaim could put 4100 back in play” — as the ES opened right near that buy trigger, then ran to 4100.75.

As for Monday, we have a nice “hammer candle” to work with from Friday, but bulls really need some sort of rotation back above the 10-day ema and Friday’s high (4104).

If we get it, 4135 is in play, followed by 4150. 

On the downside, a break of 4085 could put the 21-day sma in play, as well as Friday’s low. A break of that mark puts 4050 in play. 

ES — Zoomed In