Futures have opened for ES with a 20 point move to the downside, therefore breaking down the critical 4385 support that had held this market up all last week. This is not overly surprising and I wrote/warned about this in my last update Thursday evening multiple times writing: “If markets weren’t closed now I’d favor the wash down 1st which I would short, but I’ll see where we are Monday”.
Washout occurring right off the open, and bulls slowly running out of major reversal opportunities, losing the 200dma at 4488 April 6th, the 50dma on Friday, and now selling off deeper than the 50% retrace of the March rally. Fortunately, there are some big supports coming up, and a few favorable statistical tendencies in play for the next week bull-wise. Today, I’ll breakdown the setup this week.