ES 1990.75 continues to be the bull/bear line. Assuming that today’s low stays above the provisional low at 1983.25, which was created on a stop sweep/reversal at 1990.75, then the daily bar range chart setup should look like the chart above at the close today and shows the new ST trendline support where the current buyers are staking their bets. If we see a reversal of early gains and a breakdown below 1983.25 …then the bears would be back in control and I will need to redraw the chart above.
With OpEx now concluded, we could see the shackles come off the recent contracting range strangle on the market due (in my speculation) to pros having sold calls above and puts below (as explained here in recent posts). As usual, the option writing pros made a killing on the play–and so now we move on to the next act of the show.
The next date to watch is the end of the calendar trading year on December 31st. The 2014 ES close was at 2020.25, adjusted for continuous contract pricing, so keep that in mind as we hover just below–currently at 2011, as I type.