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Thursday March 23rd 2017
Heading into The Moment of Truth for Repeal and Replacement of Obamacare
by Mike Paulenoff www.SwingTradeOnline.com
A final view of ES, which settled down 2.25 points, but 2 points off of the intraday low, and nearly 16 points off of the intraday high.
If this was any ordinary session, then I would conclude that ES ended a minor rally within a larger, still incomplete correction off of its 3/01 high at 2401.00, which if accurate, suggests strongly that today's afternoon weakness initiated another downleg that should test and violate 2332.25, in route to the 2300 area.
Whether or not such a scenario unfolds ahead of, or in reaction to whatever is going on with the healthcare bill is immaterial at this point.
If I try to dovetail the pattern with the likely outcome of the healthcare bill, I would say that ahead of the vote ES presses to new corrective low beneath 2332.25, and thereafter, it pivots to the upside either in anticipation of or in reaction to the passage of the bill by the House.