/ES reached a high of 2007.6 and today saw its first selloff.
Ichimoku kumo support is around 1953. However, there is a need to be wary of the larger head and shoulder formation.
This selloff could see /ES reaching 1800.
/ES hit a low of 1927 pre-US trading hours on Tuesday.
By US open, it has rally and consolidated at the 1940 range. Breaking out of the Chikou Span resistance on the Ichimoku 5 minute chart is sufficient for me to go long on /ES
While the long position is established, bear in mind the resistance on the Ichimoku Weekly Chart at 1976.
With the recent rally from 1802, /ES has formed a ‘double bottom’ and a ‘W’ formation has confirmed a possible rally.
As it enter the 1962 region, the thick kumo resistance signifies possible heavy resistance and we may see /ES going into a trading range from 1962 to 1932.