We have now had a textbook pullback from key resistance at 1467.50 to test the ST support trend line. Yesterday’s low also entered the short-term ideal buy zone on Stops and Targets, so we now have all the requirements met for a minimal structural pullback.
ES 1424 becomes the new ST low candidate and I have drawn in two check structures to test that tentative low on pullbacks. The first is a tentative ST trend channel in purple, the second is a tentative ST support trend line in dashed blue. If 1424 turns out to be a good ST bottom, one or preferably both of those structures should hold. If not, then we could see another poke lower.
VST trend is down under 1443.50, but that would reverse on a move back above. Hard deck for bears remains the descending trend line resistance presently at 1457.
Yesterday’s low at 1424 is what is in play here. Day trading action is bullish above/bearish below. If the tentative support structures are broken to the downside, the next VST target lower would be the stops resting under 1414.50, with a sharper pullback targeting ST trend support at 1387.50
So, we have a little bounce going here–but we’ll have to watch and see if 1424 sticks.