Correction Versus The Machines
ES-- After nearly two hours of trading, and in the absence of follow-up positive headlines (from last evening) about significant progress in the US-China trade negotiations, ES has pressed from a new recovery rally high at 2798.00 to an intraday low of 2769.00 so far.
The 2769 low is no coincidence technically. As we discussed prior to the opening bell, 2770 represents where the nearest term up trendline off of the Feb. 8th pivot low at 268.75 cuts across the price axis during the AM session. So far, trendline support has held the near-30 point sell-off.
That said, however, and again, in the absence of forthcoming positive headlines about the trade negotiations, the trendline should be tested again, and if violated at 2770/69, should trigger downside continuation that probes much more important support at 2766 to 2762, which must contain the selling pressure to avert additional weakness that points to 2760-2755, to revisit the 200 DMA.
A climb above 2780 for any reason will go a long way to neutralizing the near term negative technical set up...
Once again, we are faced with a negative near term technical set up juxtaposed against the emergence of a contrived positive China trade headline that triggers the (bullish) reaction function of the Machines... Last is 2772.75