ES has now had a four-day winning streak. Fed Chair Janet Yellen’s first day of testimony before Congress was seen as encouraging but is still being digested by traders. Her second day of testimony will be tomorrow. A better earnings report from Intel also helped persuade buyers to stay in their positions through the close.
Today we expect the ES to stay at the current high level to wait for the SP500 cash index option to expire tonight.
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2095-94.50 and 2088.75-86 will be today’s intraday support. As long as the ES stays above that level the odds favor the upside and buying on the dips will continue
If there is a pullback in the early session, the traders will look for yesterday’s support as a buying level. But a move above 2108 could start the ES grinding up, inch-by-inch. The short-term indicators approach their overbought territory, but not extremely so. The daily 20ema line hasn’t crossed above the 40ema line to give a buying signal. Therefore, there is still a chance for ES to pullback to retest 20/40 ema lines again.
Short-term — Bullish
MEDIUM TERM — Bullish
LONG-TERM — Bullish
The major support levels: 2085-88.75, 2062-64, 2054-52, 2038-39, 2028-30
the major resistance levels: 2108-12.50, 2119.50-21.75