Mack’s Mid-Morning ES Price Action Chart 05-06-2024

Prices are rallying this morning. The original channel up has a break and a new high in place, but prices are mostly moving sideways rather than selling off at this point. There is a gap on the regular session chart, and if prices are going to fill that gap today, then we could see a correction with a first target at 5161.50 to fill the gap. Prices could continue to push higher as well, so just stay flexible until we get a better feel of where prices are headed next.

Looking to the daily chart, prices have pushed well above the 21 EMA and have also pushed outside the upper side of the small range that had formed. Even if prices are going higher, a pullback to test both is likely at some point. The volume seems light thus far, but I am not sure if that means anything at all, other than the market is nervous and unsure of any longer-term direction at this point.

The bias is still up for now, but that could be changing. Be flexible and follow the price action sticking to the rules as we teach them.