The market continued to move side-ways in the holiday shortened last week, the 4 trading days being mostly non-eventful with choppy moves inside a rather tight range.
Considering the side-ways movement, no surprise that there is no change on the weekly cycles. YM is still below its resistance level, while ES is above but still in close range.
The daily cycles had again important developments. ES triggered an END resistance marking potentially the unwind of the up impulse. While YM triggered a bullish retrace (BR) support. These are mixed signals, in that the ES resistance normally would point to a down move, while the YM support would point to a bounce until a corresponding END is triggered. Usually that means choppy moves ahead, until the market makes up its mind which way to go. Regardless of what happens, the levels triggered are important to watch as a break-out of one or the other would be a strong message. The directionality tool is still stuck at its lowest level and provide a good clue if it moves (or if it doesn’t move and we get a bounce).
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