The ES followed through on Tuesday’s bounce with smaller increase yesterday, and successfully held the price above the monthly pivot level with high volume. Today is the rollover, and the June contract is moving very close to the cash index, so we are watching those prices for today’s analysis. At the same time traders are switching their attention to the September contract.
The SP500 cash index has resistance ahead of the current price. Yesterday the index was testing that ultra-short-term selling signal in the 2112 area. So far this area is a key line for today. As long as the index stays under it, Bulls will have to struggle to hold the price above 2101. If they fail the index has a chance to fall back to the 2095-96 zone again.
For ES, today the September contract (ESU5) will be the front contract to trade. A move below 2095.50 level could lead the futures back down to the 2088-90 zone. But if ES can hold above 2098.50-2100 it could push back up to 2109.25-12.50 to fill the rollover gap first before it pulls back down again.
term — Bullish
MEDIUM TERM — Bullish
LONG-TERM — Bullish
The major support levels: 2072.50-68.50, 2062-59.50;
the major resistance levels: 2116-18.50, 2123.50-2121.75, 2134-36.60 and none