ES Morning Update February 8th 2016

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2090

 

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Futures at a triple bottom

MACD's in oversold area.

The futures finally broke-down through the 1870 area (1880 area on SPX) where it hit 4 times previously and bounced off of it.  Now we are a new support level in the 1850 area.  If it breaks there's no more support until the prior low on January 20th in the 1800-1810 zone.

On the upside we have the 1870 area now as resistance, as well as the falling trendline in the 1900 area.  It too early to know the next direction at this point.  A breakdown of the current support should lead to a drop to test the double bottom.  If the this level holds we should see a bounce from it early in the day and a retest to make a "high low" before considering any longs.