ES had a bounce day yesterday after seven days sliding down from the recent high. The pullback time from our CIT day (April 21) was due last Friday. Yesterday’s accumulation behavior hints that the ES may go back to the previous high in the following 7-8 days.
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Today 2082-85.50 will be a key zone for the upside. A move above 2088.25 level will be bullish. A further rally to retest last month’s high 2105.25 could be on the way the next day.
But holding below 2081.50 could lead ES back down to do some back fill. 2067-66 will be a key for the downside. A break below it could lead ES down to retest 2055-59. 2050-52 will be major support zone for today.
The daily PMO indicator still declines and remains a “SELL” in the short-term. But the 50-day moving average line acts as support and encourages trend buyers to buy on dips. This will slow down the speed of the decline.
Short-term === Bearish
MEDIUM TERM === Bullish
LONG-TERM === Bullish
Support and resistance
Major support levels: 2055-52, 2039-37.50, 2021-23.50, 2009-07.50
Major resistance levels: 2099.50-2103.50, 2108-10.50, 2116.75-19.00, 2135-30