The current rally in the S&P has been nothing short of phenomenal. As a matter of fact, Wednesday’s trading all the way around was wild when you include all the various futures and commodities that were moving big points all day, from overnight to after hours trading, including the Euro, Gold, Crude Oil, and the major market indexes.
E-Mini S&P 500 In yesterday’s ES report I wrote, “Beyond 1642 forecasts another major test at the 1648.50 to 1650 zone of resistance, which has rejected every advance since June.” Well, once …
The ES has reached an overnight high of 1645 and is currently trading 1641.75. If price opens the session above yesterday’s RTH high of 1639.50, it bodes well for early strength and a likely test at overhead resistance between 1648.50 and 1650.
The 1630 level has been a focal point for the market during the recent advance, and the ES seems poised to test levels beyond this zone, as evidenced by the current pre-market high of 1638. The ES continues to push toward the important 1650 level for another test. As you know, this level had rejected every advance in June, and remains the key level to watch for the next major directional move in this contract.
If the upper trend line remains intact, we could see quite a sell-off back toward a retest of support at 1595 over the next day or two, which will be an important zone to watch. Beyond 1630 is the major 1650 level, which rejected every advanced throughout the month of June. Clearly, a decision point in the charts is upon us.
