(click image to enlarge chart)
The price action so far this morning has brought the ES close to the gray channel top mentioned in previous posts as a VST target.
Just above the gray channel is the top rail of the descending IT channel shown as a red trend line presently located at 1136 area.
The yellow resistance zone between 1125-1128 offered initial resistance as expected, and price action, until today, was limited to a narrow range above the bear squeeze line at 1112.75.
This is an area where some counter-trend bears might take a shot at positioning for a lower high–perhaps using that descending red trend channel top rail as a backstop. Though I am personally not a fan of counter-trend trading, this present setup at least has some merit from a risk management point of view if that red trend channel top rail is used as a firm backstop.
The battle continues here to resolve the present trading range in the shadow of the 1/11 to 2/05 sell off. The larger trend will be confirmed eventually by either the setting of a higher high above 1148, or if the bears get a foothold and turn it back down, then a lower low below 1040.75.
Presently, all trends remain up above the S&T primary trend line at 1103. Stops and Targets LT, IT, and ST time frames are now +174, +38, and +42 respectively since the last respective intratrend signals—all with profitable and stress-free protective stops.
The gray and red channels are the next lines to keep an eye on (in my opinion). The bear squeeze line at 1112.75 is also a line that, if crossed, could signify that the squeeze is over for now.