ES Weekly Levels (Mar18-22)

The market closed red for the second week in a row as traders took profits on persistant inflation and fears that the Fed may not cut as soon as expected. Mag 7 stock weakened and ADBE dropped 13% on Friday. The Russel fell by 2% and OIL stengthened. This week the market look ahead to the FOMC rate decision on Wed.

SUMMARY

• ES had a weekly loss of 0.25% after trading in a wide range of 141 pts.
  
• ES closed red for the second week in a row.
  
• R1 = LTF 1.618 Fib X (5211)
  
• R2 = 9 ema (5196)
  
• S1 = 21 ema (5160)
  
• S2 = May 5th Low (5126)
  
• Bias remains long but choppiness at ATH increases odds of a near term pull back.
  
• Break below upward trendline would signal potential trend change.
  
• Potential risk-off and inflationary shift as XLP, XLE & XLB are showing near term strength.
  
• Mag 7 are showing weakness. ADBE dropped 13% on Friday
  
• FOMC rate decision on Wed
  
• Inflation remains persistant. XLE up 3.84 % last week.
  
• Growth and small caps still under pressure.
  
• RSI 47.52 | VIX at 14.42 | 10 year 4.31%