The Precise Take – ES pushes just above major resistance ahead of Employment Situation Friday

Big Picture Analysis:  Yesterday’s gain in the equity indexes was impressive, with the ES able to close inside a major resistance area, with nominal highs above it this morning after the weekly Jobless data.  1082.25 is the 50% retracement of the entire August down leg, which we mention because these major retracement levels have stopped the ES cold many times over the summer.  Should the ES open and push above early, then it will be a major accomplishment for the bulls.  If the ES sells off from this level, a push below 1074-76 could gain momentum and put the shorts in control again.  After yesterday’s big gain, and with tomorrow’s monthly Employment Situation, we could see some early volatility, especially around the housing report at 10:00 am, but the markets should settle down in the afternoon.

Trading Today:  The upper end of the projected range contains weekly R1 and the overnight high, from 1083.75 to 1084.75.  If it is broken, the area from 1089.00 to 1089.75 is the next target and would be the likely maximum bound.  The lower end contains the day-session-only pivot and price action from yesterday, from 1074.75 to 1075.25.

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