It was another day of double-digit movement in the ES. This time, unlike yesterday’s session, ES gapped down strong at open, but covered all the regular trading session losses at the end of day. However it did not fill yesterday’s closing gap.
The strong bounce from the low of the day at 1981.25 level was assisted by an ultra-short-term oversold condition. Today is SP500 index option expiration day, and we expect the whipsaw moves will continue. However 2050 will be resistance and 2000 will act support for SP500 index. ES will follow it until the end.
Today the 100-day moving average line around 2006 will be one whipsaw area. A move above it could lead ES to fill the 2016 gap; remaining below it could lead the ES back down to yesterday’s low area. A range move between 2025 to 1985 should be expected if ES fills yesterday’s gap at 2016 or moves under the 2000 level again.
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