To end the week, we have the PCE Price index on Friday at 8:30 a.m. Eastern. Keep in mind rebalancing as we enter the final week of the third quarter.
As we discussed earlier this week, the S&P 500 (/ES) continued to hold the low of the year at $3,639. On Thursday, /ES closed near the gap fill from $3,735 to $3,763. With /ES above structure, see if it can rip through $3,763 and head toward our first target of $3,807. If /ES continues higher, our main target is point of control (POC) at $3,875.
If /ES holds $3,735 and fills the gap, my first target will be the structure below around $3,702. If /ES breaks below this structure, my next target is the previous low of the year at $3,639. My main downside target is the new low of the year at $3,613.
Pay attention to the Volatility Index (VIX) as it approaches a major resistance zone from $35 to $37.5. As /ES moves lower, VIX can provide additional confirmation for a short entry.
My main focus to end the week continues to be SPX. Watch the video above to see which key levels and structure I’m noting on /ES.
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Stay Focused!