mini S&P 500 (update)

The ESZ2 contract touched the buy zone 1 area today and formed another supporting structure in the process.  This latest one had a supershallow retracement with right handed skewing, which is not what you'd like to see when trying to fade the sell off.  Currently, there's still too much downside momentum to take a chance at getting long in this zone.  However, I wouldn't be surprised to see a bounce here as you have a cluster of 3 fib extensions combined with the monthly S2.  The RSI is reaching oversold territory, but the MACD still has bearish momentum.  I will be looking to enter long positions in zone 2 and zone 3 with stops below the 78% retracement around 1290.00.  A weak downward move like this will have a conservative bounce target of the 61-78 pct retracement back to the previous high with an aggressive target of new highs.