August 4, Monday
After reaching new highs, ES and NQ dropped sharply as expected.
• NQ fell over 1,000 points from around 23,840.
• ES dropped nearly 230 points.
• RTY dropped 150 points.
• YM dropped about 1,900 points.
The futures updates have repeatedly reminded:
Markets are born in despair (March and April this year),
Grow in hesitation (May and June),
And end in madness (be very careful in Q3 – this was once again correct).
TCS always sticks to:
Trade the plan (do not predict),
Wait patiently,
Follow the trading plan.
Last Friday, market sentiment was very negative. Although futures dropped a lot, TCS kept reminding:
Indexes are still in a high-level wide-range shakeout.
There are no clear signs of a big rally or crash yet.
Last Friday, TCS followed the plan and bought all four index futures during the drop. By noon today, they all had good profit opportunities.
Key Levels
ES (S&P 500):
• Strong support: 6247 and 6191
• Main target and strong resistance: 6396 and 6467
YM (Dow Jones):
• Strong support: 43720 and 43380
• Strong resistance: 44850 and 45210
NQ (Nasdaq):
• Main level: 23025
• Support: 22830 (last Friday’s low was 22788)
• Strong resistance: 23580 and 23840
RTY (Russell):
• Support: 2178 and 2241
• Strong resistance: 2245 and 2287
Index futures remain in an upward trend on the daily chart.
Continue to look for buy opportunities near support levels.
Gold (GC, Dec Contract – Z25):
Gold reached resistance near 3439 and started to consolidate.
We made good profits from both long and short trades.
The trend is still strong upward.
Continue buying near support, but be careful of high-level swings and pullbacks.
• Strong support: 3331 and 3282
• Strong resistance: 3487
Oil (CL, Sep Contract – U25):
Oil dropped sharply due to OPEC increasing production.
Today it dropped to around 65.45, then rebounded to about 66.8.
Still focus on buying near support.
• Support: 65.1 and 63.2
• Rebound target and strong resistance: 70.8
Natural Gas (NG, Sep Contract – U25):
NG faced strong resistance and dropped sharply.
Its moves are often extreme, sometimes 5%-10% in a day.
• Strong support: 2.81
• Rebound target and strong resistance: 3.83
US Bonds (ZB, Q25):
ZB held the strong support at 111’15 (which was mentioned earlier).
It then bounced to around 115’29, close to the long-mentioned target of 116’10.
ZB often moves sharply both up and down.
Continue buying near support.
• Strong support: 111’15
• Target and strong resistance: 116’10
US Dollar Futures:
The dollar bounced from long-watched support near 96,
But faced resistance near 100 and pulled back.
Non-dollar currency long positions should consider taking profit.
BTC Futures:
BTC hit resistance again near 121,000, then dropped sharply to around 114,000.
• Support: 108,000 and 97,000 (both are good buy zones)
• Main target and strong resistance: 122,000 and 145,000
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