ES Likely To Trade Sideways To Ease Overbought Conditions
Jason Sen | Jul 27, 2016 04:50AM ET
E-Mini S&P 500 likely to trade sideways/lower in the short term to ease overbought conditions. A collapse is not expected but holding below 2164/62 retests minor support at 2156/55, perhaps as far as strong support at 2149/47 and the best chance of a low for the day. Try longs with stops below 2142.
Be ready to sell a break below 2143 however to target good support at 2129/27 for a buying opportunity with stops below 2122.
Above 2162/63 allows a recovery to 2172/73 new all-time high. Watch for a high of the day on the approach to this area. Even if we do break higher it is likely to be a very slow crawl again towards 2173/75 (almost achieved of course) then 2181/83, perhaps as far as 2193/95.
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