ES Remains in the Grasp of its Near-Term Downtrend

After breaking below its Oct-Jan support zone of 2000-1980 again this morning on lower oil, and geopolitical fallout from North Korea, ES (Emini S&P 500) has recovered from a new corrective low at 1971.25 to 1995.50.

However, let's notice that the dominant downtrend pattern since the Dec 30 high at 2075.00 remains intact. Unless and until ES climbs above 1998, the dominant downtrend will remain so.

Furthermore, a climb above 2003 is needed to penetrate the Dec 30 down trendline.

For the time being, the bears remain in directional control, with this morning's 24-point rally, representing a minor, counter-trend recovery... so far.