October 6 ESZ1 Analysis

Thursday, price auctioned higher on the ESZ1 contract. Buyers stepped in at the previous day’s POC right at the RTH session’s open which started an intraday uptrend. We closed near the high of the day, which was the third straight day of higher closes from the 10/4 swing low of 106800. Although the ES closed above its daily 20EMA, the 50EMA lies right above at ~108050. Today’s high also overshot a declining channel which starts on 9/20, containing two swing highs and lows. This should be taken into consideration when trading on Friday, October 7^th. I’m still not convinced by the bulls that this longer-term downtrend is over.

ESZ1 10/7 Levels:

VAH: 115525

POC: 114925

VAL: 114100

H: 116050

L: 112900

O: 113500

C: 115800

50EMA: 118050

1140 – 1130 Important support for bulls