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End of Month Trading Ahead- 31Aug, 2022

Applications in mortgages (housing is the real driver of the economy) is once again light

Market Outlook – Bearish flows continue but a key level test we have been talking about was tested yesterday and the traders came in to buy the support- albeit not as forcefully as we might like. Many pundits are calling for new lows to be tested- and that notion might stabilize as if the traders fail to hold 401 in SPY or fail to recapture 405. Those numbers are 4009 and 4049 in the ES_F

Here are the drawings of levels important in the formations

ES_F

ES_F

SPY

SPY – technical divergence but prices must confirm the divergent flows

We are likely to make several moves this afternoon so pay attention to the chat streams in the latter part of the day.

Narratives continue to affect market motion is grand forms- we just have to watch to see what they are actually saying…and that’s about as clear as mud right now.

Stay focused and just follow price into its natural support or resistance. Right now as we battle the 4000 region in the futures, it’s any man’s game…and that rarely delivers clear market edges.