ES had an oversold bounce yesterday. Unfortunately it still wasn’t able to recover the prior loss.
The rollover activities will continue today. But the volume will increase in the March contract.
In order to avoid confusion, we still use the December contract price level to get our resistance and support for today’s trading. The difference between the two contracts will be 7.50 points.
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The ES lost the support from the 200sma line. Now this broken support becomes the first resistance line at 2065.50-67, which was yesterday’s high.
The lower support will be 2025, which is the uptrend line of the triangle pattern. A failure to hold above 2025 level will be negative. In that case a further decline towards 2000-1998.50 zone will be next target, especially if the ES fails to move back to yesterday’s high area and stays under 2055 level. At the same time we could see a wild movement today.
Outlook
Short-term === Bearish
MEDIUM TERM === Bullish
LONG-TERM === Bullish
Support and resistance
Major support levels: 2030.50-32.50, 2019.50-22.50, 2006-03.50
Major resistance levels: 2088-89.50 2105-08, 2114.50-16.50, 2121-23.50