The Fed’s Beige Book indicated a stronger USD slowed US economic growth. The ES rallied into the open, but by 10:00 a.m. the trend had changed and the futures closed at the low end of the range with a loss.
Now 2000 is a psychologically significant level for the coming days. A failure to move above that level could encourage the bears to fight for the 1950 level. Earnings reports will continue to create volatility in the market.
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Today all eyes will be on the 1980.50-82.50 zone. A break below it could lead ES down toward 1973 or lower to the 1963.25 area. If ES can be held up above 1982.50 line in overnight trading , we could see a sideways move struggling to close at the high end of the daily range.
But plenty more companies will be reporting earnings soon and this could keep the volatility going. Our traders need to pay attention to the momentum reaction to the economic reports. If ES stays under 1996.50 line, we should focus on short side.
Outlook
Short-term === Bullish
MEDIUM TERM === Neutral
LONG-TERM === Bullish
Support and resistance
The major support levels: 1928-29.50, 1900-03.75, 1880-75, 1850-45,
the major resistance levels: 2016.50-14.50, 2025-32, 2050-46.50