ES couldn’t maintain the gains it made in the early sessions. After the open it sold off in an orderly fashion from the high at 2103.25 and gradually slipped back to the low at 2087.25 before the market closed. At the end, there was no change from yesterday’s close.
Today 2087 remains the key line to be watched. Holding above it will encourage some buyers. But a move below it could lead the price to drop back down to 2078.50-74.50 zone or lower.
Up to now ES remains within its broad range from 2115.50 to 2035. 20 and the 40-day ema lines act like a magnet to pull price back every time it moves too far away, which is typical behavior for a rectangle pattern move.
The stock market favorable season will be ending in May. The market may use this recent rip and dip series of moves to kill time. But for our traders, as long as ES remains inside this broad range we should look to short on the strength and buy on the weakness.