ES Morning Update July 23rd 2021

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The market continues to grind higher pushing through each resistance area one by one. Today is the best time for the bulls to make a new all time high as all the short term charts are quite overbought now. I really don't think they can hold up into Monday, so today is really the best chance the bulls have to make that last push up I think.

If it happens I think we'll see a pullback early next week. It might only be 30-50 points, or less? But charts will need some time to work off the overbought conditions and this weekend should be the start of it. Bulls can use the light volume Sunday to limit the decline in points while letting the charts cool off and reset.

It means to me that by Tuesday they could finish whatever pullback they do as by then I suspect those overbought charts will be neutral or oversold and ready for another push higher. For today though I'm looking for a new all time high at some point, which they may or may not hold it up into the close? I suspect they will drop back some after they make the new high, but probably not much. I'll end it here with this short update and wish you a great weekend.

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