ESH6 Daily chart

The Shanghai composite index fell 7% before the open Thursday and stock markets around the world dropped in sympathy. The ES had an another large gap down at the open and closed near the low of the trading range yesterday. The price action was extremely bearish.

It now looks more and more likely that the long-term top has been posted. The ES has broken the horizontal support at 1995-92 and this zone now becomes a solid resistance. All the daily momentum lines (10/20/40ema lines) chased the price drop and created strong selling pressure.

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