Looking Ahead to Next Week

1114-1116 on the ES is a key area. I am expecting a test of that level next week.
It will be interesting to see what happens at that point.

OPTIONS
There is potential to get a significant move down from there. You could scale into a swing short position with a goal of 35-45 points down.
If it goes against you, you can either exit or scale in another 1/4 position at 1120-1122.

The 1120-1122 area is also key. This resistance was rejected on 6/21 and for several days between 8/2 and 8/10. There is a strong possibility that if tested again, we will break through to a new high. However, we will most likely get a down-tick before it breaks out, which will enable us to get out of the previous trade for at least break even. It should make for exciting trading in any case and I am only laying out some possibilities at the moment. I will of course post more thoughts as we approach these opportunities next week.

If we do break out to new highs, we have resistance at 1135-1136 and then Gap fill from 5/13 at 1146.

One other potential move is a retrace to the low 1090s before we attack the 1115 area. If we find some responsive selling at the 1109 price point (maybe from a gap up on Monday), we could trade down to the low 1090s before reversing back up to test 1115. Just a thought... more to come...