The S&P 500 is showing a classic bull flag pattern right now as we consolidate here between 1456 and 1459 on the S&P Cash Index. There is support directly underneath (1450 on the ES Z December Contract for Futures) which makes this very tempting to buy if you are not long already. At the same time there is risk of taking heat on this trade if the bull flag pattern fails. Still a good long depending on how much heat you are willing to take.
Next support levels to watch on the ES (Z December Contract):
1448, 1444-1445, 1441-1442
These are all potential levels to buy (the dip), but if the ES manages to sell down to 1441-1442, that will be a very attractive level. Can't count on that though, we'll have to watch and see how this plays out.
The other option is that support holds at today's lows and the ES rallies up another leg from the current bull flag.
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