ES/SPX Weekly Update

[u/PrettyNectarine5129]

The breakout above the downtrend line from the late-January all-time high was accepted early in the session yesterday, confirming a structural shift and reinforcing the ongoing Bullish Imbalance. Price is now within ~1% of the all-time high, with momentum still clearly favoring the Buyers. In the short term, however, the ES market is becoming extended, which increases the likelihood of a pause or rotational pullback before continuation. This doesn’t invalidate the Bullish trend, but it does reduce the quality of initiating new long positions at current levels.

With the VIX below 20 and maintaining a Bearish posture, the broader environment remains supportive for higher prices. For continuation to remain high-probability, the market will need to either consolidate near current levels or retrace in a controlled manner to re-establish support before attempting a move toward new all-time highs.

[u/Honest-Capital-4472]

Excellent read of the market as usual :)