ESZ5 Daily chart

The Bulls fought to hold the ES up all day yesterday. The futures rallied in overnight trading and into the morning session, then dropped sharply but rallied again to close near the high of the trading range on increasing volume.

Now we have a first buying signal from ES given yesterday. As long as ES stays above 1950 level a further move up toward the C destination (see chart) should be expected in the following days or weeks. Traders still should focus on the buying side if there is a minor pullback into the support level around 1950.

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1965-72 is the first support zone for today, and 2004-06 will be first resistance zone. An upward move still should be expected. A move above 2008 could push the ES up further toward 2015-22 zone to search for the C top. A move below 60.50 line could see a move to shake out the weak hands move and lead the price slightly near the 1956.50-58 area. If that occurs, expect a buy-the-dip response and subsequent bounce.

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: 1998.75-95.50, 2012.50-14.50, 2025-32