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ES #F Pullback or reversal?
The ES continuous contract made a pullback of 20 points since the previous swing high on volume of 2.55 million contracts. In the previous three down waves, there was far less volume with just a little less progress (19, 17.25 and 17.25 points with 1.76 million, 579.18 thousand and 984.28 thousand contracts respectively), indicating a tiring current down move, although the current down wave is still in progress. It looks like relative strength and buying pressure is developing. Be careful for a close below 2363.25, which can result in a larger down swing and bearish reversal. Price action on the long term (black and green line) also looks like it is tiring and if the short term (red line) and medium term (blue line) price action turns upwards, a sling shot will develop to the up side. Our upside targets remain at 2403 and 2419.
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