E-Mini S&P 500 Futures
ES has sold off down to 1051.50 in the overnight session. 1050-1052 is a Support Area until broken, and a potential inflection point where Responsive Buyers could enter the market. Sellers are clearly in control, but from a Trade Location perspective, it's risky to initiate Shorts in the 1050-1052 Support Zone until price breaks below it. The Bull/Bear Line in Sand is at 1075, and the focus is on the Short side below that Level. A break above 1075 would be a red flag for Sellers, and a break above 1083.25 could shift control to the Buyers. Below 1050, we have Strong Support at 1039-1041 and I anticipate Responsive Buyers to be active there. If we break below 1050, and today develops into a trend day, the safer play will be to just focus on the Short side and Sell the bounces. Observe how high Responsive Buyers are able to push price in order to gauge their strength. For example, it would be a sign of weak buyers if they're unable to push price to the gap fill at 1065.50.
Econ Data
Redbook at 7:55 AM (CT), Existing Home Sales at 9:00 AM (CT), and 2-Yr Note Auction at 12:00 PM (CT).
ES - Daily Chart with Volume Profile and Key Levels (click on image below to enlarge)
