Sunday’s Globex session has started with both the ES and NQ gapping higher. I had already been working on a quick relabeling of the charts to reflect view #2, so the gap higher openings helped build tonight’s discussion.
Along with the labeling I have updated the Fibonacci extensions for both view #1 and view #2. Both views continue to call for higher levels before the stronger downside would resume. I also move into a discussion on trading the views. As a day trader, I am not taking a directional bias and am choosing to trade the price action instead. Swing traders, that use options or futures can still benefit from levels the expected moves are in the process of tracing out.
For Monday, initial expectations would suggest a small pull back to be followed by additional upside strength. The hourly moving averages have moved into alignment for the upside trend to continue. The Daily picture for the moving averages is not yet convincing that upside is a guarantee for the entire week.