ES will head lower probably to the 1300 range (blue rectangle) and then bounce and test the 1329.75 downtrend line.
ES may be finally beginning to pullback. It hasn’t broken any uptrend lines yet so for now we should count on this being a minor pullback. The 1329.75 downtrend line governs the pullback and provides resistance. Yesterday’s 1309.25 low should also act as a resistance level. Support is in the 1299-1301 range highlighted by the blue rectangle. I think ES will tumble a little lower to this range and then bounce and test the 1329.75 downtrend line in the 1308-1313.5 range. If ES stays below the 1329.75 downtrend line then ES could be headed down to 1285. If ES breaks above the 1329.75 downtrend line then I’m looking for ES to rally above 1329.75 and onward to 1350.
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