March 27/28 - 5720 Gap closure is a big deal here for ES Bulls

We finally got the liquidity to provide opportunities Weds, as we approach the Gap closure, bounce once 60+ points, we look to today.

Yesterday we wrote:

5720 Gap closure is a big deal here for ES Bulls.

The absolute lowest bulls want to see is the gap fill from Sunday which is now down at 5720.

A breakdown of 5720 is a potential short this AM. Further down supports listed above would be the targets. 5720 failure quickly leads us to the 5700-5689 Friday, March 21 demand. Less 89, 74-

As always, stick to the plan. After a day where we took two losses, we look to get back on track and find Grade A+ opportunities.

As long as bulls can hold 5720 gap fill, we can rally back to 5797 where the failed breakdown failed us yesterday. I think we have a good chance of getting another shot at the Major ES Inflection point and then beyond.

At 9:30AM we filled the 5720 gap and took the first long of the day:

5720- 5713 was the gap up from Sunday evening, March 21, and after Wednesday selloff I noted:

“It’d be weird to see 5720 gap not be filled”

It was filled, and provided us the long opportunity documented in yesterday’s AM letter before the open. I wrote:

Likely Supports For 3/27 are: “..5721(D &LTB and Gap Closure). 5720 Gap closure is a big deal here for ES Bulls. The absolute lowest bulls want to see is the gap fill from Sunday which is now down at 5720.”

By 10:41AM we hit T1 for 22 points and T2 for 40 points, referencing the trade and targets hit here on X:

With T2 being hit on Trade #1 of the day we awaited opportunities and moved our stop on the runner up 21 points from the entry position to 5741…

As I look at price this AM (6:15AM EST) I’m seeing price retesting the 5720 gap, closing out the runner we moved to 5741 late yesterday, and we’re awaiting price discovery, once again.

In this Wednesday morning’s letter I noted a pullback was likely from the ES Mahor Inflection point while we saw price stall in the 5820-5840 range.

March 26 Levels post:

We now have two signs that a pullback may be coming

#1 The Negative Divergence indicated on the chart in pink lines. We have a higher high in price Monday at 3PM and lower momentum on the RSI.

#2 So far, we’ve failed to breach the 5836.50 high from 8PM last night.

We look to all the technicals and I’m literally 50/50 that we’re going to see another pullback, VS this being a continuation and we move above. Higher time frames suggest pullback, lower time frames suggest continuation.

Higher time frame technicals won.

As price opened, we again, failed to make a new high and sustain the rally. The pullback we were expecting came, and then some.

You can see the selloff here:

We’ve now retraced to the 5720 Sunday gap up twice as of this AM, and look at a potential breakdown if we can’t hold here.

As I type, ES again is at a critical point, if we fail 5720, we rush to 5700, 5686, even March 21 launch of 5650.

Let’s get to it…