Hey friends, ES_F has reached an important level (finally) so I just thought I'd share a couple thoughts.
From a Daily Chart perspective we've reached that key declining trendline that the market has been flirting with for many months now. 3987 also represents a +1 Fib extension from the prior week's trading. For me, that measurement is simply a gauge to confirm that this move upward could see some exhaustion here.
There's also been large resting limit orders at and around 4000 on the book for a while, with not much above them. It shouldn't surprise us to see ES_F reach 4000 and pullback to that declining trendline mentioned above. Another catalyst for reaching 4000 would be to fill in the gap/single prints left by the initial selloff (you can barely see it on the chart below, but there's a gap from 3994-4000).
From a range perspective, we're still in a healthy upward move. This morning, ES_F failed to take out the prior day's low and failed to retest the 50DMA (green line on the chart above), so as long as price remains above 3922 I think the buyers are in control.
I hope you're all having a great trading day, thanks for reading!
Horse