ES Shows Signs of Near Term Upsde Exhaustion, But Sellers are On Strike!

ES-- heading into the final two hours of trading, one thing stands out: after a 76 point, 2.8% upmove in two trading days (since Friday at 2:30 PM ET), there is still no selling pressure on dips. Zero. Zilch. This warns us to expect another burst of buying, perhaps a jam job that attacks the 2800-2805 next target zone during the final 20 minutes of trading.

That said, technical impediments at the Fibonacci 76.4% resistance level, and the divergent, relatively weak performance of nearest term momentum argue that additional strength will be unsustainable UNLESS it is accompanied by a bullish catalyst (such as "actual, announced progress" in the US-China trade talks).

Bottom Line: While the lack of selling pressure argues for upside continuation into the 2800-2805 target zone, the strength is likely to be unsustainable in the absence of a new bullish catalyst. That said, ES needs to decline and break beneath nearest key support at 2791 to 2788 to trigger preliminary upside exhaustion signals... Last is 2797.25