Mid-Day Outlook – 8/2/2021

Not a great way to start August. We are on the trend/lower channel line for this leg of the rally at this writing, also the bottom of the recent balance/trading range. The first trading day of the month is normally positive, but the bears have taken control after a morning triangle consolidation of the opening gap.

Once again, we are dancing around our 5-EMA stop level for swing trades, so stay tuned. Also, mark 4408.50 on your charts. Today’s regular session open is also the weekly and monthly open and will define whether the weekly and August monthly candle is a bull or bear candle. It was interesting that that market stalled there all morning before it broke to the downside. I had one short trade for 9 points a contract this morning, and that is it. The notes appear on the chart above. There may be a buy developing on a double bottom at this writing, but it is too early to tell.

We will see how the day develops and closes. But it is a disappointing start to a new month for the bulls so far.

A.F. Thornton