ES spent the entire session in the red and lost another 14 points yesterday. It is not only ES falling; the whole US market – DOW, SP500 and NASDAQ — all ended with losses yesterday. The G7 meeting in Germany is said to be a factor in the decline.

Based on Daily chart, ES holds the price above the short-term uptrend line, which is equals to the SP500 cash index 135-day moving average line. The June contract value approaches the cash index as we approach the contract expiration next week. The 135-day ma for the ES is below the short-term uptrend at 2066 area.

Today we may see a brief bounce if overnight trading holds ES above the 2075 line. But 2098-2102 is the current major resistance zone. As long as ES stays below it, the short-term trend remains down. We still may see ES go down to retest 2078-75 or lower toward 2066-62.50 again.

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