In this post we cover briefly the auctioning process in Emini S&P futures (ESH25) and the fact that the ES has stayed somewhat ahead of its counterpart the NQ which holds most of the technology names which are due to report calendar Q4 earnings this coming week. Part of this is perhaps associated with some sector rotation which customarily occurs leading into the tech earnings period. It becomes imperative for us to discuss some open gaps below in this 7~8 odd-day rally which has seen higher lows from the week prior to the Trump inauguration into this past Friday. 

Gaps below Friday's settlement [6132.00]

• Jan 21 ~ Jan 22 – 19 points [rounded] 6092.25~6111.25
• Jan 16 ~ Jan 17 – 43 points [rounded] 5969.75~6012.75
• Jan 14 ~ Jan 15 – 60 points [rounded] 5892.25~5952.25

This should give us an idea of how far we could potentially liquidate in the event we need to close the immediate open gaps and that could happen if the earnings from the upcoming week are fragile enough to meltdown the investor sentiment to some extent. Using simple measured moves, we appear to have bounced off a notable fib support level on the pullback prior to settlement on Friday from the 6122. while settling at 6132. If this support holds, the immediate target for the ES into these big tech earnings would be 6174.25. On the flipside, the opposing measured move has immediate resistance at 6144~6150. If this resistance band holds, we are likely headed lower into 6113.50. If you are a short-term futures market participant, keep these tradeable levels in mind recognizing that we already held the last level of immediate intraday support as mentioned earlier at 6122.

Support levels for the Nasdaq futures (NQH25) is little bit different and if we drop from Friday's settlement at 21907.75 off a measured move, the immediate profit target of 21798 would still be sitting above the wide band of support of the extended measured move from the price action that took place this past week. There is support in a large price band between 21646.50~21809.00 and the immediate gaps below us begin from Jan 21 and date back to Jan 14.

Gaps below Friday's settlement [21907.75]

• Jan 21 ~ Jan 24 – 117 points [rounded] 21777.25~21894
• Jan 17 ~ Jan 21 – 310 points [rounded] 21214~21524
• Jan 14 ~ Jan 15 – 180 points [rounded] 20991~21171

Download the charts from the links below

(ESH25) -→ https://tradeguidance.com/newsletters/es-01-25-2025/

(NQH25) -→ https://tradeguidance.com/newsletters/nq-01-25-2025/

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