The end of Month re-balance led the US market to bounce yesterday. The turnaround occurred earlier than we expected. It started in the overnight session in Asia and Europe before the US open.
Today we may see a continuation high move in early sessions (including overnight sessions and pre-market session).
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2013.50-15.50 (the 200-day moving average line) will be the first area to watch. As long as this zone holds up the odds favor a move up to test the 20/50ema lines (2061.50-57.50, the major resistance zone).
But daily PMO indicator still falls and shows no sign of turning up, which hints that the price still can drop as soon as the month-end re-balance is done.
1999 is the control line for the downside. A move below it could lead ES to fall back down near the 1987 area to bail out Monday’s short players.
Outlook
Short-term === Bearish
MEDIUM TERM === Neutral
LONG-TERM === Bullish
Support and resistance
Major support levels: 1993.50-95.50, 1983.50-85.50, 1975-73.75, 1964-62.50
Major resistance levels: 2057.50-62.50, 2078.50-81.50, 2089.50-88.50