My 1110-1112 support zone was satisfactorily tested last night when the ES traded down to 1112.25. The market quickly reversed to the upside and following the positive July ADP Jobs number at 8:15am, the market spiked up another 5 points and is now trading over 1120 again.
Now the question is, will we test the 1124.25 high today and will we break above it?
The way I see it is that minor support at 1118 must hold this morning or we could revisit the downward part of the range and officially test the 1110-1112 support zone. So the key is to hold the 1118 level and if we do, there is a solid chance that we break above 1124 and test the 1128.50 - 1130.50 level. I will be selling that level.
Today could prove to be another day of consolidation, but overall I am biased to the long side. We may see the break out today or we may see it tomorrow, but I will feel comfortable buying the pull backs up to 1130 at which point I will be a seller.
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