Market remains under pressure. Initial claims came in at 359,000, which is trending down, but was higher than revised expectations of 350,000. Market has maintained weakness as a reaction and remains under pressure.
ES will likely trade down to 1377-1381. ES should find support there and that price area will be a good long candidate. We'll have to see how much buying can come in at that point, but I expect that the market will rally from there. As was the case yesterday, it is best to wait for confirmation of support before taking a long entry. There is definitely a change in market behavior of late as buying the dips is no longer as easy as we have been accustomed. There is much more contention between buyers and sellers at support levels now.
My expectation is that the official downturn has not yet begun, though the recent move to the high of 1419.75 is a potential topping pattern. The uptrend is still intact however, and until this is not the case, I remain biased to buying the dips.
Currently looking at key support at 1377-1381 ES
If that support does not hold, the next level to watch is 1369-1370 ES. I would be a confident buyer there.
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