As I’ve posted dozens of time, only one level matters in ES and its that 4260-80 zone with 4260 being support. We probed into this zone 8x this last week, but also multiple times in January 2022, Oct 2021, July 2021. Dozens of tests. We saw this afternoon what happens when a key level breaks with a nice waterfall and (finally) some one way action
I posted yesterday “To me, this suggests we probably want to test that 4200-4175 zone next down, with 4135 below there” which we finally got late afternoon. Of course, ES faked to the upside first this morning above 4300 1st (which trapped long and I had to trailing stop out of) but fairly one way action after 4260 broke to the downside. This market, you need to be nimble.
Now that ES lost a major support, what’s next? I’ll get into today, and touch on what seasonality says