ES is in the process of forming a short-term top. The price has been struggling with the 1181 area for past 6 days. Within next 5 days, ES should make a final thrust move to end the rally from August and start to make a correction down to 1127.50-1130 range.
Yesterday ES snapped back up to fill Monday’s gap with the help if the Fed POMO. Today 1183-82 range remains important. The 1185.25 gap was created 5 month ago, and the longer gap holds, the stronger the resistance. So far this gap has rejected the price for 6 days. ES may fall as soon as that gap is filled.
The real movement actually can’t hold up the price without the POMO’s help. That is a big problem for the current market. ES could pull the price back down again if the jobs reports in the early morning can’t keep yesterday’s upside momentum going.
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ESZ0 Daily chart
ESZ0 Intraday – 60 minute bars
