We saw a lower low and a lower close on the ES (M June 2013 Contract) today providing some additional confidence to the bears, but not quite enough confidence for me to turn bearish yet.
You can see that the first two support areas I mentioned in the previous post played out perfectly today as long entries were rewarded in both cases. In the morning the ES sold down to my key 1536-1537 (ESM13) support and rallied 11+ points from there. Sellers remained in control though as the market sold back down in the afternoon to make a lower low for the week. The new low tested my next support level at 1531-1532. Buyers stepped in again sending price up 8+ points from there. This prevented the ES from closing below my key 1536-1537 price level and allows me to keep my bullish bias for the moment.
So nothing has really changed. I continue to favor buying the dips and I will be looking for a positive day on Friday.
This view will change if the 1530-1531 price level doesn't hold after the first hour of trading. We'll see what we get.
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