(click images to enlarge charts)
The daily chart above shows the ‘Big Picture’ using trend channels…
ES recently stalled at the intersection of the center tines of the LT and ST bull channels and so the intermediate term bear channel has a chance to reassert here, but price would eventually have to take out the center tine of the magenta channel to confirm.
The VST countertrend sell from 1123.50 I pointed out originally on the 8/5 post here survived the squeeze under the red downtrend channel, and is looking very good as a knife catch entry ahead of this post-FOMC break.
Once price dipped below the trendline breakout support at 1108.25, the bears that have been trapped above that line finally came unlocked. That line at 1108.25 should be a good warning/reversal line should a bear trap be sprung (from possibly around the IT primary support level).
Those bear stops are still resting above 1129.50, so until/unless this range area is left behind, those still remain as potential unfinished business for the pros–and would be an excellent place for a possible stop sweep/reversal should price rally back up there after this pullback is finished.
For now, this looks pretty bearish below 1108.25 and we’ll have to wait and see how support resolves at 1098.75 area. Next target lower is around 1085 at the center tine of the IT downtrend channel.