The market made a positive reaction to the Ireland bailout deal in overnight trading, but not to later news from Capitol Hill, where Obama and the Republican leaders of Congress announced a deal to extend the Bush-era tax cuts for all taxpayers, including billionaires.
The sell-off occurred right after the announcement, and sent the price to close near the low of the trading range.
Has the ES formed a double top pattern? It is quite possible. At least ES needs to pull back to smooth out the overbought condition.
This retracement could stop around 1203-1200 area or lower to 1185-1180. But it could take days or a week to complete that pullback move; in the the meantime yesterday’s high 1235 shouldn’t be exceeded.
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ESZ0 Daily chart
ESZ0 Intraday – 60-minute bars
