ESZ5 daily chart

Yesterday the economic reports showed slow manufacturing data and a six-year low in the ISM index. But the US stock markets just didn’t care about that. The first day of December was filled with high energy and animal spirits, and stocks were bought in almost every sector. The ES closed right on the 2100 level for the first time since since Nov. 3.

Now the bulls regain control of the four-year uptrend line, the broken resistance now become support. The bulls needs to defend this support line for the rest of the week. The Fed chair is giving two speeches today and appearing in Washington on Thursday. So far the market is getting set for a Fed rate hike in December. Any comments she makes that change that perception will influence the market price.

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Yesterday’s unfilled gap is very important for today. In order to go higher up to the 2135 level, this gap should remain unfilled until the ES reaches that upside target.

2079-82.50 is currently the major support zone. Buy on the dip as long as this support zone holds.

Short-term === Bullish
MEDIUM TERM === Bullish
LONG-TERM === Bullish

Major support levels: 2086.50-8/3, 2075-74, 2062-64, 2050-45, 2030.50-32.50
Major resistance levels: 2114.50-16.50, 2121-23.50, 2135-38, 2156-58