A Few Morning Notes on $ES

I was looking a bounce, and we got that.

From here, I won’t have a whole lot to say until more structure develops over the next day or two. But, I will make a couple of points. I do expect prices to rise. However, after initially recapturing the COVID trend line—a positive sign for the bulls—we’ve now given that back up overnight. We still have the “bear wedge” trend line beneath us, but if a major low is in, I wouldn’t expect us to get quite that low again.

To the contrary, even the bearish view should at least see a rally to the orange box, and the bullish view should see it go higher, closer to 4450 or higher.

ES

If the market doesn’t do either of these, and no persistent bid enters the market, I worry that I may have to join the growing chorus of folks calling for 4000, which I am extremely reluctant to do.


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