Nice little pullback yesterday. But 3540 and 3520 on the ES are both important support levels. We should see a bounce from one of those. And if not there, then major support at 3510. I wouldn’t get too excited about this pullback unless they take that out.
At this point, there’s no indication that that will happen. The 5 day cycle projection is now 3550, done. 2-3 day cycle projection 3540, almost down.
Trend resistance is currently 3560 as of 6 AM ET. That drops to 3545 at the NY open at 9:30 ET. Next resistance levels above that would be around 3565 and 3570. If cleared, look for 3585 again.
You can see on the 30 minute bars, they already look like they’re headed back up, with big positive divergences on the indicators, after ES found support at big downtrend channel centerline. Test of resistance 3555-3560 now starting looks critical to the outlook for the rest of the day.
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