ES Update

.

Screen Shot 2013-06-18 at 9.48.33 AM

.

With the establishment of a lower short-term structural high at ES 1642.50, that line has become more important.  If/when it is exceeded to the upside, we will have a higher high in both of those time frames and that would force short-covering on a range breakout.  The next VST resistance target above is at 1666.75.  On the other hand, if ES were to remain below that line–the bears would still be in business, with their ultimate goal to reach down and ultimately build a lower low to change the trending paradigm.

.

..

Screen Shot 2013-06-18 at 9.59.32 AM

.

Of course, the game this week really centers around two key events… the FOMC announcement tomorrow at 2 pm and then quadruple witching on Friday.  We’ll watch and see how the trap unfolds going forward.  For now, the range is between 1590.50 and 1642.50.  There is a smaller range between 1642.50 and the open gap at 1617.75.  No matter how you slice it…1642.50 is the key line in play and should work as a bull/bear line going forward.

…my .02

.

.