ES bounced from its major psychological support level on Friday after it made 5 declining days.
So far on the daily chart, we still assume that the inverted H&S pattern is intact and expect the ES could move back up to complete its final wave 5 before July.
But the bullish sentiment is changing, and the early anticipation that QE2 will end is quietly moving this market. The price may carry on further, but it can also stop any time unexpectedly.
We may see ES make a pullback move to retest 1307-1306 today. As long as this range holds up, the short-term uptrend remains intact.
But if price goes below the 1292.50 line, it will eliminate the bullish forecast. In the last stage of wave 5, we need to go carefully, step by step.
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