Daily Plan 07/16

The divergence between ES and NQ continues with ES shifting value higher while NQ shifts it lower. Looking at NQ, the auction seems that it wants to continue downwards now after hitting the upper most shelf last Friday. Value continues to shift higher on ES after failing to accept back into last week’s distribution. The divergence makes this tough but levels continue to work so let’s continue to use them within this current balance.

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ES

Main focus for tomorrow is 7604 - 08 marking off yesterday’s inside day high as well as the upper most shelf of the last four RTH sessions. This will be the line in the sand for buyers to look for the break higher or at least continue building momentum. For the breakout, will be observing 7625 - 28.

Above 7604 - 08, target 7625 - 28. Acceptance above and target 7650 and 7665.

Below 7604 - 08, target 7594. Continued strength below and target 7570, 7557 then 7543.

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NQ

Main focus for tomorrow is 29730 - 750 marking off yesterday’s VAH. Also sits right at the shelf on the composite and has been a reference point the last couple sessions as well. Above and looking for the rotation back up towards the upper end of the balance 30050 - 080. Staying below suggests possible weakness. The ultimate goal would be to take it back down for the complete move to 29230 - 260 but I will be observing the shelf within this multi-week balance and yesterday’s VAL 29550 and 29500 respectively to help me guide it.

Above 29730 - 750, target 29865 and 30050 - 080. Continued strength above and target 30280 - 300.

Below 29730 - 750, target 29550 and 29500. Continued strength below and target 29230 - 260.

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