SP500 Future (ES) Charts (03/24/14)

1.  From yesterday's comments: "....break 54 will serve as early warning and below 51 will turn to sideway/bearish bias".  ES did just that and daily technical has turned into a sideway/bearish bias now.  PL is still very flat and trading bands have also flatten.  Daily indicators are still in bullish territory but that could change in a heart beat if ES breakdown such as closing below 44.  So basically ES is primed for some action soon.  Up or down?   It is anybody's guess however we can watch ES's reaction at key levels to get an idea.  So pay attention to RS levels.

2.  On 3h chart it can be easily seen that ES tested 41-2 support  and bounced and with open/close bars all hovered near the lower trading band (51 level) signified the importance of the 51 level again.  The low of 42 also allowed me to draw a price channel that is parallel to  the previously channel.  So we will follow this channel now and looking for reactions at the upper and lower channels.  Indicators are negative.  PL has crossed TBL however it has not crossed the thick orange line yet.  If ES continues to weaken tonight or tomorrow morning and 44 level and lower channel fail to support, the next major support zone (20-30) is likely the target ES is heading to.  If strength returns and ES crossover the orange (55-6) and then pushes above 60.5, then the upper trading band or upper channel line will likely be the next target.

3.  Short term RS Levels:  81, 75, 66-7, 60.5,  55-6,  51,  45.5 zone,  41-2,  34.5,  28,  23， 11.5


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