I have been watching 2061 closely as the key line in play–and so far, the pros have defended that level, as expected.
This morning we are getting a bounce from a VST trendline poke and reversal that was within the Stops and Targets ST ideal buy zone and has now reclaimed the 2073.50 level. Next upside targets are an open gap at 2084.50, confirmed resistance at 2088.25, and then the open gap from June 12th at 2102.25.
The pros got the preliminary new addition/deletion list for the Russell Reconstitution at the close on June 11th and it is quite possible that the two gap down opens were purposely done to create buying opportunities ahead of the FOMC show–so keep that in mind.
ES 2061 needs to hold today to move the Stops and Targets short-term primary trendline higher at the close for the first time in two months. If that happens, and 2061 is not taken out over the coming weeks, that line could eventually become the next higher IT primary trend support and then form the next higher low in the weekly bar paradigm–so it is an important line to watch as we navigate the FOMC announcement tomorrow and then work through the official Russell rebalancing at month’s end.