MPTrader Out Front: TSLA, MRNA In the News ... ES Levitates At High Level

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After releasing better-than-expected earnings, record results, strong margins, and a promising conference call, TSLA was down 1.5% in pre-market (see my 4-hour TSLA chart), but has since recovered.  As I noted pre-market to our members, with TSLA at 852.06, "unless TSLA rolls over harder and presses beneath 825/830 support on a closing basis, my pattern and momentum work indicate that TSLA has unfinished business on the upside into the 900-915 new ATH target zone directly ahead."

MRNA is also in the news this morning, as it has received emergency authorization for its Covid-19 booster vaccine for 65+-year-olds, and for high-risk individuals, and is a half-dose compared to the first two doses. In reaction, the stock popped about $3 (1%) higher in pre-market trading. My 4-Hour Chart on MRNA shows the major 41% correction off of its ATH at 498.60 (8/10/21) followed by a minor, but significant upmove from the 10/07 low at 293.58 to the 10/19 high at 346.86. It is a significant upmove because according to my near term pattern work, the strength exhibits bullish form, which is an initial indication that a new bull phase has started.  A sustained climb above 346.86 will trigger a next higher projection to 395-400. Only a reversal and break below 320 will compromise the currently constructive near-term setup.

The Emini S&P 500 (ES) is remarkable, and at this point, remarkably bullish given that after a 6-session, 4.9% upmove, the index has levitated right near the top of its range. In fact, all of the action during the past 24 hours represents a 22 point range, and a 3.5% "pullback" from yest's high at 4532.25 (see my 15-Minute ES Chart).  From a nearest-term perspective, as long as any weakness is contained above 4500-4504 support, the larger 6 session upleg will remain poised for upside continuation to 4550-4560 next, and thereafter to 4580.

From the perspective of my 4-Hour ES Chart, let's notice that 4 Hour Momentum confirmed yesterday's high, which usually means that ES has to climb to a higher-high for the move to create a potentially significant negative divergence, and non-confirmation of the new high. If such a scenario unfolds in the upcoming hours (after all, tomorrow IS Friday!), then let's expect ES to thrust above yest's high at 4532.25 to test and likely hurdle the ATH at 4540.25 (9/03/21) into the 4550-4560 next optimal target zone.  Again, only a roll over and sustained breach of 4500-4504 support will compromise the current setup.

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Veteran Wall Street analyst and financial author, Mike provides detailed and timely analysis and trade set-ups on a range of markets. Read more...

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