ES experienced a remarkable surge in the past week. However, we've returned to the crucial breakout and retest range of 4400-4430. For the rally to persist, it would be ideal for ES to have a moderate retracement and maintain demand in the vicinity of 4325-4340. While the price might continue its upward trajectory without a pullback, a measured retracement would be a positive sign. It's essential to remember that we remain in a declining channel and are approaching a vital zone characterized by the breakout, retest, and trendline resistance. Anticipate inconsistent and sluggish price movements (cooling period) before either a continuation or a reversal.
Key levels to monitor: Resistance: 4400-4430 Support: 4325-4340