Significant Development.
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There was a test of the Control Support at 6711 on Friday 11/14 and ES bounced. In an intraday update on Friday I asked, “Can they hold it to the close? Even better would be a close above the 6804 Resistance, the 1/2R off October high (dashed line on chart)“. They couldn’t – the rally reached 6801.50 overnight and has since declined. But, and most importantly, the Major Control has migrated to 6768.5 (from 6711).
There have been a growing number of ST negatives and it is now critical for Bulls that ES recovers that level. The Support at 6711 is still valid but if it is broken I think the situation would turn negative on the longer timeframe.
