Technical Momentum Outlook – Week 40.17

Portion of Article posted HERE @ Seeitmarket   


MML Charts

Using the Murray Math Level (MML) charts on higher time frames can be a useful market internal tool as price action moves among fractal levels from hourly to weekly charts. Confluence of levels may be levels of support/resistance or opportunities for a breakout move. Optimal setups will pass through Resistance or Support prior to moving in the opposite trend.

Charts of Interest

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Current Technical Trend…

  • Week 39 recap and trend charts
  • Indices momentum closes back upside of weekly open making new all time highs on RTY/ES
  • RTY small caps lead momentum drive upside
  • VIX levels holding in mid 9’s
  • Short interest on FAAMG stocks building with AMZN under the 50ma
  • VTI/FFTY momentum remains upside at short term MML highs
  • Uptrend Momentum: FEZ ytd return up 21.11% in comparison to SPY 11.74%
  • Current IBD Outlook: Confirmed Uptrend

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Video Outlook:

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Key events in the market this week

  • USA: Yellen, ISM MFG, ADP, NFP
  • GLOBAL: FR CPI
  • Q4 Earnings Season
  • Tesla earrings
  • CarMaker Sales Report
  • Google Event Monday
  • Transports report September monthly

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the-bottom-line

Technical Momentum probability on the indices remains in an UPTREND though with caution at long term MML highs.

October permabears hoping for a pullback as Earnings Season begins to roll out. Watch for the FAAMG stocks pullback to play out the Nasdaq futures and Tech ETF momentum. Dollar index at a key decision point. 

As always, watch for MML setups on price action break above resistance high and back under resistance low. Downside, watch for ES/YM open gaps to be closed and 50% pullback as 1st level of support.

Swing ETF positions should be careful about chasing at the highs as pullbacks/quarterly 3sig re-balance are always opportune times to re-enter the trend. Quarterly re-balance this week.


 Attempting to determine which way a market will go on any given day is merely a guess in which some will get it right and some will get it wrong. Being prepared in either direction intraday for the strongest probable trend is by plotting your longer term charts and utilizing an indicator of choice on the lower time frame to identify the setup and remaining in the trade that much longer. Any chart posted here is merely a snapshot of current technical momentum and not indicative of where price may lead forward.   


LOWEST OPEN GAPS

Open Gaps

  • ES: 1589
  • NQ: 3864.75
  • RTY: 1462.1
  • YM: 14745

ETF Sectors


As always, leave your bias at the door of where you think the market should be, watch the charts in front of you and stay away from the Z-Vals. Be ready in both directions. Trend will reveal itself on Heikin Ashi bars and proper trade management will keep you in the trend.


Thanks for reading and remember to always use a stop at/around key technical trend levels.


Government Required Risk Disclaimer and Disclosure Statement

CFTC RULE 4.41 – HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.   

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