ES has been working lower since 12/7 as we near the much anticipated FOMC announcement on Wednesday at 2 PM.
The pros have now broken the downside of the ST range so that guarantees a lower low to go with the lower high set on 12/2 at 2097.25 and joins the VST in a downtrend (under 1990.75). As always, the old ST pivot low at 1990.75 should now be watched for signs of a stop sweep/reversal play–and that becomes the new bull/bear line right here.
The chart above shows the next major downside target at the open breakaway gap of 1976.25 from 10/14/15. If ES fills that gap and it doesn’t stop the push down –then the rising IT trendline support would be the next major target.
The bulls are being abused by the pros ahead of the FOMC announcement. Hard to say at this point what that means in terms of the likely coming ambush around that event–but let’s keep an eye on what happens right here around the two targets mentioned above (the bull/bear line at 1990.75 and the gap at 1976.25).