Update: New Levels to Watch on the S&P 500 and ES

The ES is acting oversold, but that does not mean it can’t go down.

However with the go 20-to-1 downside volume on the NYSE yesterday, some short-covering rallies should be expected.

Additionally, we are closing in on the Sept Quad Witch on Friday, so there should be big two-way flow and a ton of chop coming into the market (as if things were hard enough).

So what are we looking for in terms of levels?