ES continues fighting with major resistance zone 1182-85.25 range (created on May4-6). The resistance zone seems a big obstacle for the bulls in the past 7 days. So far bulls won’t give up as long as the Fed keeps pumping the money into the market. They will take every chance to push price back up the support line until the Fed stops.
But the election is only 8 trading days away. Can the bulls really stop the market from declining?
Gold has had two days of strong selling; Oil price is creating a top, and went the same way as our three major markets, up and down around 83-80 range. US dollar bounced up from its extremely oversold condition. The investor sentiment survey showed 49.62% bullish vs 25.19 bearish yesterday. All are signs our market is not far from its Top area.
Yesterday morning good earning reports from CAT and McDonald’s kept the upside momentum going until lunch time. And then the selling started. The price mainly has no change from its previous close. Without Fed injections of funds this market seems to have no life.
Today ES could try to make new highs again if 1166.50 holds. If price goes up to 1186-88 area first in the early morning, it is likely for us to see selling pressure there again.
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ESZ0 Daily chart
