The retail sales report early Tuesday was better than expected. It muted the double–dip fears, at least for this moment. But the price seems to have all the good news already factored in.
ES made a continuation high move after the early retail sales report. But later it couldn’t hold the gain and closed near the open. For the short term, the price is getting exhausted. A small pullback down close to the 1100 area should be expected. A move below 1091 and a close below it will indicate that a short-term top has been posted, and a further decline toward the range bottom could be on the way next week.
On the 60min chart, ES has formed a rising channel. 1113 will be today’s key line. A failure to hold above that level during overnight trading will give the shorts an excuse to push the price down to 1108-1105 first (cont’d).
ESZ0 Intraday chart – 60-minute bars
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