$ES: Tested the Key Support on Wed

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$ES #ES-mini #Month Opening Range

Yesterday bears tested the key level of support on the monthly timeframe:

The two key Monthly levels are calculated by my free Monthly Opening Range indicator.

The market axiom is “a broken resistance becomes a trailing support in an up trending market”.

Now lets look at weekly and daily levels calculated by my premium Cycle Trader indicator.

The weekly trend is still up:

To turn the weekly trend down, bears need to close a week under the weekly support 2 = 6,317.

The only problem for bulls is that the drop turned the Daily trend down

the immediate resistance is the broken daily support 6,419.25.

What bulls need to do to turn the Daily trend at least to neutral? They need to close a day OVER a daily support. Again, the Daily support for today is 6,419.25.

What bulls need to turn the trend back up on Daily?

They need to push price and close a day OVER a Daily resistance.

Daily resistance for today is 6,476.25. That is too far away from the current price, right?

The Daily resistance for tomorrow will be 6,434.25. That level looks easier to break from teh current levels, right? This is the logic of working with levels on multiple timeframes.

Now lets look at the wave count:

ES-mini 120 min chart

This count considers the drop we got this week as teh second leg down, a subwave (c) down, in a corrective (a) down, (b) up, (c) down corrective structure.

If bulls manage to stop that bleeding over 6,333 that (a) -(b)-(c) down structure would provide them with a base to make another run to a new all time high. The weekly trend is still up with the weekly support 2 standing at 6,317.

Again, so far the monthly trend and weekly trend are up. Bulls need to cure the damage on daily by closing this week over 6,434.25.

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