ES sold off from another bad housing report early Wednesday morning, but as soon as the price reached the bearish symmetrical pattern target 1037, bargain hunters stepped in and pushed it back up above 1050 for closing.
ES had a short-term oversold bounce in the afternoon and that bounce could continue until lunch time today (Thursday). The price could go up a little further to the 1069.25-1071.50 range.
We are still looking for confirmation that the bottom of the consolidation range has been broken (see the chart in yesterday’s commentary). We want to see how far ES can bounce. As long as the price doesn’t exceed 1071.50 the downtrend remains intact.
If ES only bounces up to 1069.75-1071.50 today and tomorrow but still closes under 1050 on Friday, we will interpret that as a breakdown of the consolidation range. In that case a further decline towards July’s low 1006-1010 range should be expected after the current bounce is exhausted..
ESU0 Intraday
