ESH6 Daily chart
ES gave up about two-thirds of Friday’s gain yesterday. It failed to hold above 1895.50 in reaction to weak US economic reports in the early morning. Later it decisively broke 1883.25, Friday’s low, and closed at the low end of the day’s trading range.
The movement could be considered as a back fill move. But one thing should catch our attention: the bank sector was weak all day long. Maybe it is waiting for tomorrow’s Fed’s rate decision.
Based on the daily chart, the 5-day ema line turns to the downside again, and the 10-day ema line remains on the downside. Both are fast lines and point out the weakness of the current price level.