Mack’s Mid-Morning ES Price Action Chart 08-05-2024

The overnight session saw more heavy selling, probably in sympathy with the Asian markets that were selling off heavily as well. Prices are trading well outside of the trendline on the daily chart now, so there is more possibly going on here than just a normal correction. We could still see another rally to retest the highs on the daily chart, but we could also see more selling in the near term as well.

Iran is threatening to attack Israel at any moment, and the US has sent warships to the middle east in support of Israel, so if that powder keg explodes, the market could actually sell off in a big way, so just be aware that things are precarious at the moment. Many pundits are calling for a market crash, so that leads me to question things, as they are usually wrong on such calls. Maybe this is the time they get it right though, so just be aware that things are very volatile and that a larger correction could come at any moment.

For now, prices are rallying, although that rally may be running out of steam as well. There is a large gap on the 2000 tick chart, and if prices do continue to rally, that target is up at 5357.75. The market dropped over 200 points last night alone but has recovered about half of that so far. It is very possible prices could turn lower again from here, but no matter how the day progresses, I would expect some mixed trading along the way.

Just stay flexible and trade wisely, as anything could happen to set things off in a bad way. If prices turn lower again, look for a possible measured leg down similar to the overnight leg. That will make for a very bearish day if it happens, but it is a possibility that you should be aware of overall. Stay flexible, always trade with safety stops and go with where the price action takes you today.