ES went sideways yesterday to consolidate Friday’s gain. It was a quiet day – a 13-point range – while the market was waiting for a statement from the Bank of Japan this morning and the Fed FOMC tomorrow afternoon (Wednesday).
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Today 2009.50-2007.50 will be a key zone. ES could whipsaw around this key zone if the BOJ doesn’t provide any surprises to move the price.
The resistance formed by the top of the downtrend channel is lying at 2025. A move above it could run overhead stops and push the price higher up to 2031-35 (short entry). ES shouldn’t go above 2037.50 level and close above it today.
A failure to break above yesterday’s high (2015) could lead the ES down to make a sideways move, but if that happens we expect it to still close above 2000.
Short-term === Bullish
MEDIUM TERM === Bullish
LONG-TERM === Neutral
Support and resistance
Major support levels: 1960.50-62.50, 1950.50-52, 1928-30
Major resistance levels: 2018.50-23.75, 2033-35.50, 2050-55, 2075-77