The S&P e-mini futures (ES) are traveling inside the recent short-term uptrend channel starting from last December.
Last week’s decline was a minor retracement, based on the daily chart.
Friday’s closing price is right at the first daily support level, which becomes today’s key line.
The retracement could continue if the 1278-1277 range fails to hold up, or the price could resume its uptrend to push price back up to 1296-1300 range if buying momentum returns.
Daily momentum indicators remain in overbought territory. The MACD indicator gave a second bearish divergence signal.
When we see the third one, it often indicates a major retracement is on the way.
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ESH1 Daily chart
