Why I’m Still in the Bearish Camp

Markets have rallied over the past few sessions as various data points are starting to show that inflation is cooling.

However, keep in mind that while inflation may be down from its recent peak, it is still historically elevated.

That’s keeping interest rates high as well, and it’s going to be hard to call a bottom in the market until rates really start to decline again.

This is the main reason that I’m still sitting in the bearish camp and not completely sold on the buyers taking over just yet.

I’m still seeing strong resistance on the indexes, which is what we’ll take a look at today…

Will Resistance Hold?

On the daily time frame, the market is still inside of the longer term down channel that has kept a lid on prices all year.

Daily Chart of S&P 500 (ES) Futures — Source: TradingView

Within that channel, the ES has formed a short term up channel, and the market is currently hitting resistance at the top of that channel.

Here’s what that looks like when we zoom in to the hourly chart…

Hourly Chart of S&P 500 (ES) Futures — Source: TradingView

As you can see, the ES one hour time frame is hitting the top of the channel where resistance can be found.

If resistance holds, it is expected the market to push bearish towards the bottom of the channel.

Entry: Counter trend line break bearish in the sell zone below the top of the channel.

STOP: In the buy zone above the entry.

LIMIT: 3,803.25

Once or if the market provides the one hour entry, it will be a good idea to turn to the five minute time frame and to look for Tunnel Trader / Destination Trader / Chandelier Trader selling ideas towards the one hour price target.

The Great American Reset

According to expert analyst Ross Givens, America as we know it is about to change.

Long-term, I believe this change will be for the better.

But to get there, you, me and every other American citizen will have to live through an unprecedented level of chaos…

Unlike anything any American has ever experienced.

Here’s how you can protect yourself during this crisis, and potentially even grow richer…

Keep on trading,

P.S. For more on the markets as well as trading education and trading ideas like this one, look for the next edition of Josh’s Daily Direction in your email inbox each and every trading day.

I’ll be bringing you more of my stock and futures contract trading tutorials as well as some additional trading ideas.

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Josh Martinez

Josh Martinez

Josh Martinez is an elite Analyst who’s been actively trading the financial markets since 2011. He’s known as one the leading innovative traders in this industry due to his his cutting-edge strategies.

Josh first burst into the scene when he took an initial deposit investment of $500 and turned into over $39,000 in just under 2 years.
Josh’s trading articles have been featured in Your Trading Edge, The FX Street, Trader Planet, Forex Crunch, Trading Pub, and Equities.com.

In addition to trading, Joshua has also trained thousands of traders worldwide. His strategies and systems have helped others find success in the market

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