ES Update

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I mentioned yesterday that there was a support void under 1371.50 and that the next target lower would likely be in the 1351 area.  The first push down came close to that target–reaching 1352.50.  The next line in play here from the bounce should be 1371.50.  The battle now is between ST bears and IT bulls at IT support, which S&T defines as 1351.50 and can extend as low as 1337, where we have rising IT trend line support.

If the pros are interested in taking this lower, we could see sellers appear near 1371.50–otherwise, if a rally develops, 1380.50 becomes the next target with the top of the bearish channel located at approximately that level.  As I mentioned yesterday, it really is all about 1380.50 to determine if this is/was simply an intermediate-term pullback to be followed by a stop sweep reversal, or if the IT trend is the next to flip.

Structurally, we have a low enough low to eventually reset the IT.  They took it back the bare minimum to maintain the breakout above the key IT trending level at 1350.75, so now we watch to see if the bears have another push in them, or if that was it.

Bias remains ST bearish below 1380.50, but IT bullish above 1351 as we watch to see what happens at 1371.50/1380.50

…my .02

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