ES declined sharply yesterday and erased most of the gains made on Tuesday. The deep selling yesterday afternoon and the close under the10- and 20-day ema lines changed the ultra-short-term buy signal to neutral.
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Yesterday ES failed to break above the 2083.25-85.50 zone, and gave a green light to the sellers. It is likely for ES to fill the 2054 gap during overnight trading.
A move below 2052.75 level will be bearish. If we see that price a further decline to retest the 200-day moving average line at 2023.50 area should be expected.
However the 2023 level is the neckline of a developing bearish H&S pattern, which could help to hold ES up today.
The daily STO indicator is near the neutral area. The signal line didn’t cross below the slow line so there is still a buy signal, but the signal is very weak.
Tuesday’s high at 2079.75 could be the high for this week. As long as it holds ES down, focus on the short side.
Short-term === Bearish
MEDIUM TERM === Bullish
LONG-TER === Bullish
Support and resistance
Major support levels: 2035-37.50, 2021-23.50, 2009-07.50, 2000-1997
Major resistance levels: 2085-83, 2099.50-2103.50, 2108-10.50