ES paused its advance below its December high due to a short-term overbought condition yesterday. It pulled back 7.5 points to close below last Friday’s closing price, but still held half of Friday’s gain.
Yesterday’s decline was not serious, just an attempt to release some overbought condition, while also testing the important former resistance at 2050.
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2076-2088 is the Nov/Dec 2015 high, and is currently acting as a resistance zone to prevent the price from popping through it.
In the past, the middle level of the 10- and 20-day ema lines has been keeping the ES from falling. It is currently lying at the 2036.50 area, which could be a reasonable pullback target which would not do any serious damage to the uptrend.
Today 2048-46 will be the key zone. Holding above it could push the price back up to yesterday’s high or higher up to 2076-78.
A move below it could trigger a slight downside run to push the price down toward the 2037.50-35.50 zone. If we reach that level, we should expect to see buyers coming in at that point.
Short-term === Bullish
MEDIUM TERM === Bullish
LONG-TERM === Bullish
Support sn resistance
Major support levels: 2035.50-37.50, 2021-23.50, 2000.50-03.50
Major resistance levels: 2075-77, 2085-88, 2098-2100