Last Friday, the US market sold off; yesterday it bounced sharply. Both moves – up and down – were attributed to the same event, financial news from China. Can the Chinese government change US economic data or hire more Americans? Obviously not. So my should this move the market?
There is nothing changed from last Friday and this Monday. The ES remains inside a broad range. So does the SPX. As long as this range contains the price, anything else is just “noise”.
ES was gap up strong at the open yesterday, but in the last half hour trading, it gave up 6.50 points and closed a modest 4 points above last Friday’s high. Today 2087 will be the key line to watch. Holding above it still encourage the buyers. A move below it could lead the price to drop back down to the 2078.50-80 zone. But as long as the 2075.50 gap remains unfilled, ES still could bounce back up to 2095-96 zone or higher up to challenge 2100-05 zone.