ESZ5 Daily chsrt
ES broke the 2084 support line yesterday and closed below it. It gave a first reversal signal and hints that 2110.25 could be the ultra-short-term top.
The short-term pullback should not cause much concern to long-term and intermediate-term investors. The correction can give them a chance to enter on the long side at a better price.
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For short-term traders, this is not the time to fade the intraday downtrend. We will continue to see the dip and pop movement. For the very short-term trading, right now we are looking for chances to “Short the bounces.”
Today ES could continue staying under 2078.50-80.50 zone and challenge the first major momentum support at 2058.50. A failure to hold above 2055.50 could lead ES down toward 2033.50-35.50 to test July’s low again.
We expect the very short-term low could be reached on Friday, around the 2058-55 zone, or lower around 2035-25.
Outlook
Short-term — Bullish
MEDIUM TERM — Bullish
LONG-TERM — Bullish
Support and resistance
Major support levels: 2064-62, 2052-54.50. 2035.50-32.50, 2025-23.75
Major resistance levels: 2114.50-16.50, 2112.75-23.50, 2131.50-29.75