Sellers Drive Market But Long Opportunities Remain

Sellers control the market as the short-term trend continues lower. The ES has now traded below my 1420 key support level four days in a row with each of those days seeing a slightly lower low. At the same time, sellers have not been able to hold the ES below 1400. The push to the low of 1394.50 on the ES last night came following the Apple earnings miss. Apple, as well as the market, have held their own so far indicating that earnings expectations have already been priced in.

The ES is giving some signals that it is in the process of reversing back to the upside as support is holding steady at 1400 ES so far. I expect a move back up to 1427-1433 in the near term. This is key resistance and I wouldn't be surprised to see another push lower from there. The short-term trend remains down and I would prefer to enter a swing long position somewhere between 1375 and 1385 on the ES. For me to favor the long side again, the ES will need to see consecutive closes back above the 1430 level. Until that happens I am neutral and will look to trade a range between 1380 and 1433. As long as the market doesn't break down below 1370 and/or the ES confirms back above 1430, I will be favoring the long side again.