We’ve seen selling pressure come in in recent days and after breaking trend support the question is where do we go from here especially with a holiday week coming up meaning traditionally low volume and choppiness.
Here’s one scenario that “could” play out. Before the recent highs we were caught in a sideways range for about two weeks from roughly 2703-2733. ES then popped up so close to 2800. Now ES is back at the lower end of that previous range with some shorter time frame oversold levels to be worked out with some consolidation. With the coming holiday week, one scenario to be mindful of is the development with a head and shoulders pattern with a slope of 2703.
We’ll see if we chop around this previous range for a week or so like before and see what happens but is that support level gives, I wouldn’t be buying dips until about 2600 area.