ES1!6016.25 tested a very important resistance level around 6035-40 last night, a level I've highlighted multiple times since last week. We opened a short position at 6038.5, and soon after, ES dropped 50 handles from that point.
The index recovered some of its losses in premarket trading, buoyed by hopes of positive news from the U.S. China trade talks. I expect generic headlines like "Trade talks went very well" at some point today. But I'm unsure how the market will react. The market may be tired of the same old rhetoric and could demand an actual trade agreement, something I doubt will ever materialize.
Given this, it's possible that we'll retest the overnight low around 5980-5990 zone today. The timing of the test will likely solely depend on news flow.