ES made a continuation high move yesterday following the minor gain from the prior day. But before lunch time, price reacted strongly to news from Germany suggesting a way out of the Greek debt drama. The price moved past 2098 level to trigger a strong upside momentum run. By the close ES gained about 27 points
Yesterday’s movement was bullish, and accompanied by high volume. Today we want to see a follow-through and hold ES above 2099 level. A move below 2098.00 level could restart a downside move again and push the price back down to 2088-90 area. Early Jobless claim and Retail Sales will help to move the price. If overnight trading goes low first, it is likely to see ES to bounce back up later.
The 135-day moving average line area (2066-2062.50 zone) needs to hold up the September contract. Today is a rollover day. The June contract will go with the SP500 cash index volume and Sept contract will be the front contract to trade on Friday. Buying on dip will continue today.