ESH6 Feb. 8, 2016. Daily chart

The ES gapped down at the open yesterday and dropped sharply until the European market closed. It mainly reflected concern the problems with European banks may spread to US banks.

The market recovered by bouncing from the last August low, aided by hope that tomorrow’s Congressional testimony by Mrs. Yellen may calm the nerves of frightened investors.

So far last year’s support zone still helps to hold up ES. But after Mrs. Yellen’s appearances before the US Congress Wednesday and Thursday it could turn out differently.

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