ES Morning Update May 16th 2018

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Looks like a flat open here this morning. I added a new falling trendline in orange and that's where the overnight move up stopped at. Now it's stuck between that falling resistance and the falling support from the blue trendline. It's looking a lot like all the other peaks and drops do from the last month or so, whereas the first move down (yesterday) is followed by some sideways action then another drop followed by a fake out move up that's lower then the previous days' high. Then the next day produces the larger drop of the whole move. If this pattern continues we should have another drop today or tomorrow that is followed by a quick rebound that goes up a hair lower then todays high.

After that we should see the bigger drop, which might be this Friday or next Monday. Either way it's looking likely that we'll get a drop in the next few days. My focus today will be to see if the falling orange trendline holds back the bulls or if they bust it and do that "lower high" move up today instead of tomorrow or the next day. Possibly we chop today into the Apex of the falling orange and blue trendlines and then gap up tomorrow out of them for that lower high... and then start the bigger drop? Either way odds favor the bears here for the next several days. Lets see what they can do.