(click image to enlarge chart)
The ES sold off overnight from a touch of the red downtrend line mentioned yesterday.
ES 1128.50 is the range bottom (illustrated by the yellow rectangle in the image above).
The black dashed trendline represents the short-term support trendline and a breach and hold below that key line means that the bears could have something going.
Current Stops & Targets short-term primary trend support is at 1128.50 and the short-term trend would switch to bearish below that line.
This is what I have called the ‘white knuckle time’ in past posts about establishing a new trade from primary support. It is not uncommon for a sharp pullback to test the buy point (triggered yesterday). Trick is to come away from that line on the right side of the trade—and the market will decide that for us.
ES 1128.50 is the line in play (in my opinion)
Comment added at 11:09 am:
Yesterday’s low was at 1126.25 and just below that should be where the bull stops are located. If this fast move down is designed as a stop sweep, then would expect 1126.25 to act as a bull/bear line going forward for speculative trades. In other words, new trade establishment is short below and long above that line here in the VST (in my opinion)