At 6:30 AM in New York, the ES fucutures had spent the overnight hours pulling back, reaching key support at 3460. That also happens to be the 5 day cycle downside projection.
What happens next depends on whether this support level and target holds.
Click to engorge.
So will it hold? Odds favor it because it’s also the site of the rising 60 hour moving average, which tends to be the site of a bounce on the first touch. Then I’d look for a rally to the top of the channel, now at 3492, dropping to 3486 by 10 AM in New York. Assuming it gets there, that should be the point at which we find out whether the bulls are still in charge.
Click here for the longer range view, and subscribe!
You can follow my intraday snark at the Stool Pigeons Wire. Register there and join in!
