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ES To March Low: Bounce Here Would Be A False Bottom

Published 06/30/2015, 02:08 AM
Updated 07/09/2023, 06:31 AM

ES Could Put in a False Bottom

ES just took out the overnight low in a melt-down and is just below 2050 as I type this.

ES would often put in a false bottom here for a retrace to 2078-2079 before continuing down to the March low or it could just go straight for the March low.

The S&P 500 is just above its 200 dma and that is likely to provide support for the bounce.

The March low is a critical decision point. Either we’ll see strong buying into the selling below the 200 dma and the March low will be the starting point for a potentially huge rally or ES could continue melting down to roughly 1900 before a meaningful bounce.

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