ES Update

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ES has attained the IT/ST confirmed resistance targets I pointed out yesterday (for another +17 point gain) and now the bears have a shot here on a countertrend trade setup…

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The premarket high was a direct hit on the VST and S&T resistance targets and we are seeing some early profit-taking from that line, which is expected for the bulls.  I have drawn in two target zones for a pullback–the first one corresponds with the last VST trendline breakout area and also lines up with S&T’s initial target at the top of the ideal buy zone for trend followers.  This is a counter-trend setup here in a powerful macro uptrend, and so it is imperative that any bearish speculators place a strict exit/reverse stop above the session high to avoid being caught in a bearish failure and continuation of the present uptrend.

This market is extended and certainly due for a pullback, but it is going to likely come only when the pros have finished squeezing the bears into capitulation–and the depth of any pullback is going to shed some light on the staying power of the move from the spotter low and IT trendline support.  This is the best setup bears have had in quite a while, so let’s see what happens from this resistance.

…my .02

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