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ESH6 Daily chart

ES had a strong pullback yesterday even though the PMO (price momentum oscillator) gave a buy signal on Monday. It not only had a big gap down at the open, the price also went down without attempting to move up to fill the gap. Today this gap needs to remain unfilled for the ES to maintain the short-term downtrend.

1880-75 is a key zone for today. As long as it holds the ES up, there is still a hope for ES to move back to retest the 10/20 day ema lines. But any bounce will not last very long. That is because both the external and internal indicators are weak and likely unable to hold up any gain.

Today the ADP report will be released in the early morning session. The news could influence the ES price movement. Holding above the 1885 line could lead ES to have a bounce. A break below it will be bearish and a further decline toward 1865-55 zone should then be expected.