Good Morning Traders, We are looking at a market that is still holding its downward channel from last week Sundays highs. We have to minor traps near the top of this channel that could have some trapped bulls that will dump there positions if we break lower as they will be pressured to do so unless they have a bigger cushion of pain. When they start to feel the squeeze they will sell there shares basically. I highlighted with the two arrows the minor traps that we have, which you can see by the wicks outside of the channel, but the body of that candle closing within. I am expecting a decent range day for if we break this downward channel we should be heading back up towards that 1350 area again. If we break below this 1335 area be on the lookout for 1328. We are getting sideways action in the dollar and commodities look to be trading higher from the overnight sessions. Looking at the copper commodity it did not make a new overnight session high along with gold and silver so that is definitely looking week compared to other metals. I like the financials to the short side this week if we roll as they were not able to hold up last week as expected. Healthcare is looking strong and some energy stocks have pulled back to support, but who knows if they will hold as the dollar looks to have broken its long term downtrend. We will wait and see in the meantime look at the chart below !! GL
/ES S&P 500 Futures 4hr Chart
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