ES essentially was in a 2-week balance and last week broke the balance high. Then it was a question if we would get a look above fail and remain in balance or get a breakout. The way Thursday and Friday’s sessions went, with pushes to the upside in the afternoon, revealed a bullish sign to me that ES was ready to breakout. The next key pivot point to take out is June’s HI. So far the globex session though has reverted back into Friday’s sessions IB, so this makes it a bit more cloudier if ES is going to continue breaking out or now it’s decided to go back into balance.

Let’s take a look at what to watch out for today and today’s key levels.

The globex session for ES has pulled us back into Friday’s IB. If ES opens within Friday’s IB then first thing to look for is a prior IB break. So looking to the upside we have the prior IB high at 7605.75 followed by a HVN at 7617.5, prior settle at 7620.25, and last week’s HI at 7627.25. Those would be the first upside targets to look at, if we are able to get those and continue, then we can start targeting the next daily level at 7636.75 and June’s HI at 7648.75.

To the downside, we have the prior IB LO at 7590. If we open within the IB then this is a good level to monitor for continuation or reversion. Opening below this level and will look to see if it acts as resistance. We have essentially a big HVN at this level really stretching from 7592 to 7586.5. So could be a bit choppy if it stays in that zone. If it does break below this then would target the overnight low at 7566.5 followed by Friday’s low at 7552.75, and would be suprised if we get this far but there is then a HVN at 7544.