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NQ E-mini Leads, Dragging ES And YM Higher

Published 07/06/2020, 09:25 AM
Updated 07/09/2023, 06:31 AM
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Whilst the E-mini NASDAQ 100 continues to rampage higher, both the E-mini S&P 500 and the E-mini Dow Jones 30 have some way to go before they too develop the equivalent bullish momentum and break out into the new high ground.

ES-daily Chart

Indeed for the ES, we have yet to see this contract clear the volatility trigger of the June 11th with the indicator arriving on the wide spread down candle, and where price action has remained ever since. So from a technical perspective on the daily chart, there are two key levels to consider. The first of these is a clearance of this candle at the high of 3177, an area which may be tested today, and the second is the minor resistance at 3220 which was the precursor to the plunge which followed two days later.

Volume on the VPOC histogram remains light and as such presents little resistance to the move higher, whilst above, we have weak price based resistance denoted with the red dashed line of the accumulation and distribution indicator, a level which has only been tested once. Whilst investors remain cautious, the trigger trap of June 11th was just that, and with markets returning to full participation after the holiday, the outlook continues to remain positive despite the surge in virus cases.  And as the NQ E-mini drags the other two indices higher, an ES move through 3250 should open the way to a continuation and acceleration of the developing bullish trend.

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