Watching Reindeer Games in ES.
As of this writing coming into lockup on Tuesday evening, ES is near what I call the neutral pivot. 1135 – 1136 looks like an interim area of resistance. Looks like Skynet is back with regular upward price movements starting at 2 PM. Using my predict the weather approach, and remembering what happened last night, go long at Europe open with appropriate stops. Sell after the first 1/2 – 1 hour. Come back in around 2PM to ride ES into the close. Obviously this shouldn’t be followed blindly, but with carefully picked entry points and stops. ES pivots:
- R2: 1138 = comfortably above the upper trend line on the daily ESH0 chart. Breaching this suggests irrational exhuberance above the irrational exhuberance. A short would be a very gutsy move without proper protection.
- R1: 1135.25 = This could be the upper barrier for overnight trading. It’s hard to say this early. But, it would be a point to look for a short entry depending on how the action is unfolding and how close it is to Europe open.
- Neutral: 1130 = Was resistance for the last 2 days. Probably has turned into support for a long scalp later on.
- S1: 1127.25 = More support from the bottom end of the range over the last 2 days. If this breaks then it will break hard. Good place for a stop on a long from the Neutral pivot. Good place to think about going short if it is breached.
- S2: 1122: I don’t see any recent support here. If broken, 1119 is the likely bounce level tonight.
But, all this is just opinion and speculation. Overnight is just too weird.