Note:
1. As expected the weakness on Friday carried over and ES traded basically flat/slightly down. The good news is the 66.5 support held during the morning test and ES pretty much was trading water around our 71.5 level. Daily indicators remained in bull camp and momentum declined again due to narrow range and flat market. Daily close was above the top trading band and rainbow expanded. Narrow bodies and long whiskers are indicative of hesitation after a nice run-up.
2. I got a little worried early in the afternoon since trading action were under the mid trading bands best illustrated on the 3-hour chart. A close under it will not body well for a bullish case. Luckily the late afternoon rally before close took care of my concern and ES closed above the midline. On 3-hour chart there were 2 bars underneath pinky proior to the closing bar above it so basically ES needs to stay above 71.5 level to have a bullish bias. Had ES printed another bar or two under pinky we could have pinky crossing under the signal thick blue line which will not be good.
3. Indicators on 3-h chart are considered as neutral and ES just came out of oversold condition. So ES has with a lightly bullish bias at the close.
4. Levels for DTing: Just took a close look at the chart. The levels are the same as listed on 03/08/14. Good luck!
Daily
3-Hour
