ESM20 Update

Setback holds 23.6% again

The break from the long term swing point at 2930.00 took it right back to 23.6% of the rally at 2782.00. The previous low before they hit the long term swing point was also 23.6% back at 2718.00 on 4/22/20, this lead to new highs as it should when holding that tight of a retracement. I am not so sure it will go for new highs this time, being that it is retesting the long term swing point of 2930.00. The 78.6% level of the recent move is also at 2923.75. Failing to take out the previous high would be a negative sign and since they already reacted from the 23.6% level you should look for 38.2% back at 2660.00 on the next break. The long term target from this area is still 2475.00. With a solid close above the long term swing point, I would want to see it followed by new highs and if so the target is 3130.00. On a new highs you will also have to watch the 200 day average up at 3000.00. Hitting this area and then closing back below the old high would be a negative sign, especially if they close back below 2930.00.