ES had a strong gap up at the open yesterday and opened above last May’s high at 2134. It forced the shorts to run for cover and helped to hold the price for up the close. So far the outlook is bullish in all time-frames.
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ES advanced by a series of stair-type moves to a higher level, starting in the overnight trading. The regular hour trading range contained less than 12 points – we called it a “Grinding move”. Even though the market sentiment still is bullish, we may see a minor pullback today.
Today 2150 is a major line for July option expiration. As long as ES stays above 2130, bulls will continue to fight for closing above 2150 on coming Friday.
But it will be a battle with traders who are looking to take some profits from their previous longs.
However a minor pullback shouldn’t do any damage to0 the up-trend in all time-frames. Buying on dips will continue if ES drops into 2130-28.50, 2120-18.50 and 2103 level.
Short-term === Bullish
MEDIUM TERM === Bullish
LONG-TERM === Bullish
Support and resistance
Major support levels: 2100-1997.50, 2085-83.50, 2056-55, 2043-41
Major resistance levels: 2148.50-50.50, 2156.75-62.50, 2175-78.50