Decision Time
Here is a zoomed in version of the hourly chart on ES. It shows what has happened over last week or so. ES paid a visit to 865 on Wednesday and promptly bounced back. ES 875 has acted as support region. After the move up to 884 region in Wednesday night globex session, the down move was contained by 875 region. In tonight’s globex session, ES is precariously close to breaching 875 again. If 875 gets breached conclusively here, then it will turn very ugly for bulls on Friday – a big gap down at open.
On the upside, ES 884-885 is a big resistance. If that gets overcome, then ES 890 is the next stop and after that ES 896 (corresponding to SPX 900). I think that the move down to ES 850 and below will not happen before this Opex. ES will most likely be range bound between ES 875 and ES 900 or there about.
