ES dropped for the second day in a row. Post-Brexit volatility still was in effect yesterday. ES not only broke last Friday’s low, it also closed under the 1993.50 level, which continues to give a short-term bearish outlook
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Today 2000 will be an important level, fought over by both sides. It is likely to act as a resistance level with 1975 as the first support.
As long as overnight trading overseas holds the ES up the price can still try to move to the 2000 level or slightly less for testing.
But there is still a chance for ES to go lower towards 1950-55 if the 1973.50-72 zone fails to hold.
The daily PMO indicator still declines, and shows no sign of turning up, and the slow STO still has a little overbought condition. Therefore, if there is a bounce, that bounce shouldn’t last very long.
I expect to see Short on early strength, if any occurs, and buy on weakness later.
Short-term === Bearish
MEDIUM TERM === Neutral
LONG-TERM === Bullish
Support and resistance
Major support levels: 1975-73.75, 1964-62.50, 1956.50-53.75, 1943.50-42
Major resistance levels: 2065-62.50, 2078.50-81.50, 2089.50-88.50