SP500 Future (ES) charts (03/13/14)

1.  March ES contract closed the day sitting just above 1846 support after failed to stay above the important 71-2 level reached during the ON.   Around 46-9 is a key R/S zone.  The daily low printed at 41.5.   Below that we are talking about 34.5 as major and 37-8, 28 as minor supports.  Market internals weaken further though all daily indicators are still in bullish territory.  Close is under pinky near 54 (resistance) and the thick blue is at 32 near 34 support.  Hence it won't be a surprise to see ES test that level however this level in my opinion has been well tested before (I don't want to see that).  Daily rainbow started to contracting following the 3-hour's lead.  If tomorrow's close is below pinky again this weakness could be serious with further downside potential.

2.  3-hour chart took  a punch on the chin and pinky kissed thick blue then everything fell apart from there.  The channel has been broken as well as the thick orange line.  Rainbow has narrowed significantly and ES needs to return to >60 to avoid serious technical breakdown.  ES is oversold and price is under lower trading band.  Indicators are all in bearish mode now.  If ES has difficulty to stay above 49 tomorrow I think bears will take it over. 

3. R: 56, 60, 65-67, S:   46.5, 42.5, 34.5


Daily






3-Hour

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