ES 5 minute analysis

Yesterday (5/2) was a large trading range day. After a spike and climax bear trend and large second leg down from the previous day (FOMC announcement), prices reversed up in two legs. The bears failed to form a bear channel and instead prices remained within a smaller trading range and closed in the middle of the days range.

So far today is in a tight trading range in the middle of this weeks larger range. Both sides are fighting for follow through. The bulls are trying to close prices above the open for a bull close on the weekly chart. The bears want the week to close on or near its low (yesterdays low) to form a sell setup from a failed breakout of the all time high and a test down. Both sides are currently getting trapped as prices form a small expanding triangle. As of now (10 AM) it looks like today will become another trading range day with heavy two sided trading, unless one side gets strong consecutive bars and can create and keep gaps open.