Yesterday
I mentioned there is no need to map out lower ESU5 levels until a breach below 2062 which for now is the overnight (OVN) low and now ESU5 is also testing value at 2071s after bouncing from 2062.
With such a bounce from 2062 and
with this week also being FOMC week I am still doubtful a 2062 breach will come with ease unless value holds both in the pre-market session and during RTH as well.
If
value holds for the bears I do see
potential to reach the 2051/50 area
ahead of FOMC if first getting through today’s first lower target at 2056s/55s but due to the everyday buy
the dip (BTD) script odds favor at least one attempt to get back in value/+2071s during the RTH session
today if not before the cash open. If back in value during RTH the 80%
Rule will apply to the upside with potential to reach the other side of value at 2078s/79s after and if first getting through the 2076s area.
Once/if
the bulls succeed to get above value/+2078s
the final for the bears to defend is 2082s/83s
otherwise the odds will increase for more upside ahead of FOMC and/or post
another Greece headline/rumor.
Ethan Premock
Futures & Options Strategist
Hamzei Analytics, LLC