Good economic news in the early session and pre-market Tuesday was overshadowed by escalating conflict between North and South Korea, who were firing artillery at each other across the border. The ES gapped down at open and stayed down until the FOMC minutes were released early in the afternoon.
Even though ES managed to hold above the 40-day moving average line for closing, the early declining move did a lot of damage on the daily chart.
So far the H&S pattern remains intact. The 10- and 20-day moving average lines lost more of their ability to support the market, and they now turn into resistance levels. As long as those lines hold ES down, the price will continue to challenge the 1175 line. A break below 1171 will be bearish. In that case a further decline toward 1152.25 should be expected.
This is the last trading plan for this week. The market is closed Thursday for the Thanksgiving holiday, and we will not trade the half day session Friday.
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ESZ0 Intraday – 60-minute bars
ESZ0 Daily outlook
