ES had a pullback day yesterday after a strong rally last Friday. This pullback looks just like a back fill of last Friday’s low area for testing. It didn’t do any harm to the short-term uptrend.

The two-day FOMC meeting will begin today. In the early morning we may see the ES continue to trade at yesterday’s low area or slightly lower near 2095-90; it will shake out the weak buyers if the selling persists through the day sessions.

If this is the case, we expect ES is going to make a low first for Wednesday’s FOMC announcement and bounce later in the week.

The 2100 psychological support is a key line for today. Holding above it would allow the ES to stay inside yesterday’s range and chop along to kill the time.

2115.50-17.50 so far remains as a resistance zone. ES may rally to challenge it again, but we don’t expect it will go much higher than 2125-23.50 today.

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