ES Review & Morning Prep
Yesterday’s RTH session offered an early fade opportunity at the overnight high, in line with the overall trend since the Iran war started. Intraday bias was neutral. The perfect trade would have been selling the overnight high and covering at the prior day value area high: 6681.50 to 6632.00, which happened in the first half hour. Great in hindsight, not so easy in real time in a jumpy headline driven market.
Overnight so far ES has retested the prior support zones from below, and failed. It has broken the short term bull/bear from yesterday and is currently holding beneath 6600 (settlement was 6640.75). The RTH low at 6573.50 was nearly touched. The range has been 6647.00-6574.00 so far in a slow down trend.
The zones for today are below. The key zone for longs need to hold is 6572-6574.50 which is the bottom of the few days balance since Trump’s 200 point rally tweet on Monday. I don’t expect it to hold but will wait for the market to show it’s hand, and failure to break down could lead to a sharp move higher into the upper zones where sellers are likely to step in again I expect.
