The ES closed below the low of its consolidation range yesterday confirming the weakness that it demonstrated on Friday. US markets have since traded lower in the overnight session as we are set to gap down nicely this morning. As I mentioned in the last post, a failure of buyers to push the ES above 1330 yesterday would be a signal of weakness and sure enough, the ES has now traded down to 1310. This is a key level for this morning. If buying comes in after the open and the ES recoups its losses quickly, that would be very bullish. I think the market will be more indecisive, however, and a move down to the lower 1300s is not unlikely.
I am a confident buyer today at 1300-1302. I am a seller on the first move back up to test lower reaches of the past weeks consolidation channel, currently around 1324-1325.
Levels to watch on the ES today:
Resistance above at 1317-1318, 1321-1322, 1325-1326
Support Below at 1310, 1305-1306, 1301-1302
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