Pullback Levels (if we pull back!)...

I took some time to quickly assess the levels and gauge this last rally leg. Here is the 60 minute view of the ES futures for the last several sessions:



First, the rally looks powerful from the standpoint of the price action - but the volume of the last leg looks weak compared to the prior leg. (Marked). Let's assume that this signals exhaustion and there will be a pullback (eternal optimist). Using two fib grids and a couple of trend lines on the price channel, we see that if we break below 1037 our first test is 1033. This will be the intersection of the bottom trend line and the 62% retracement. Rule of thumb, if we break 62% we will likely get a full retrace of this top rally leg. (1031 may cause a bit of pause).

If we retrace this last rally, I think it will be a very important victory for the bears. The next immediate target would be 1023 - which is the 38% retracement of the larger main rally. I am confident that this will break, as the gap at 1018-1015 is calling!

Looks like the price action has had a head start this evening.

Good luck!