ES seemed to find its footing at the 2062 level. It not only regained the control of broken short-term uptrend support line, also it held up well above the 135-day moving average line this time too.
Now the Fed will be decisive in driving the US market to a decision about the short-term trend. A move above 2100 level will confirm recent decline is ended, at least for the time being, and the ES could then go back to the 2120-35 zone again.
Today is FOMC announcement day and anything can happen. If the Fed delays or negates an immediate interest rate hike, it could lead the US market to rally again, and leave the shorts scrambling to cover, which will drive the price even higher. If the Fed does raise interest rate, ES could go down to retest yesterday’s low again or lower near 2055, but we expect buying on the dips to continue.
Short-term — Neutral
MEDIUM TERM — Bullish
LONG-TERM — Bullish
The major support levels: 2062-59.50, 2053-50.50, 2043-42
the major resistance levels: 2106-07, 2116-18.50, 2123.50-2121.75 and none
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