Thursday February 21st, 2019 by Mike Paulenoff ES (S&P 500 mini futures)-- After nearly two hours of trading, and in the absence of follow-up positive headlines (from last evening) about significant progress in the US-China trade negotiations, ES has pressed from a new recovery rally high at 2798.00 to an intraday low of 2769.00 so far. The 2769 low is no coincidence technically. As we discussed prior to the opening bell, 2770 represents where the nearest term up trendline off of the Feb. 8th pivot low at 268.75 cuts across the price axis during the AM session. So far, trendline support has held the near-30 point sell-off. That said, however, and again, in the absence of forthcoming positive headlines about the trade negotiations, the trendline should be tested again, and if violated at 2770/69, should trigger downside continuation that probes much more important support at 2766 to 2762, which must contain the selling pressure to avert additional weakness that points to 2760-2755, to revisit the 200 DMA. A climb above 2780 for any reason will go a long way to neutralizing the near term negative technical set up... Once again, we are faced with a negative near term technical set up juxtaposed against the emergence of a contrived positive China trade headline that triggers the (bullish) reaction function of the Machines... Last is 2772.75$SPY $DIA $QQQ Mike Paulenoff is author of MPTrader.com, a real-time diary of his technical analysis & trade alerts on ETFs for precious metals, energy, currencies, and an array of equity indices and sectors, including international markets, plus key ETF component stocks in sectors like technology, mining, and banking. Sign up for a Free 15-day Trial! * I really like Mike's charts and analysis. This is shared with my readers here via MPtrader.com *Disclosure: I may trade in the ticker symbols mentioned, both long or short. My articles represent my personal opinion and analysis and should not be taken as investment advice. Readers should do their own research before making decisions to buy or sell securities. Trading and investing include risks, including loss of principal. If you liked this article, please click the LIKE (thumbs up) button. Feel free to leave any comments, question, or opinions. Follow us and check back occasionally for additional articles or comments.