Trading plan for Aug. 4, 2015

150803-ES-dailyYesterday the ES declined further from the weak closing on Friday. But it managed to close above last Wednesday’s low. Even though the futures closed below the 20/40 ema lines, the momentum buying at the lows hasn’t diminished too much.

Today we may continue to see a testing of yesterday’s low area around the 2080-78.50 zone if ES can’t move above 2093.75 in overnight trading. But later in the sessions, the ES could move back up to yesterday’s high area if the price breaks above the 2095.50 line. The volatility will continue to be high and price could have a big swing today.

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Here is the member content for Tuesday. Download the trading plan here: 150804-plan

On the daily chart there is a potential bullish inverted H&S pattern, which I just noticed. The neckline should be above July’s high at 2026.25 or it could go to our major number at 2136.50. That pattern is still tentative, and for it to work the ES has to remain above yesterday’s low around 2080-78.50

Short-term — Bullish
MEDIUM TERM — Bullish
LONG-TERM — Bullish

The major support levels: 2054-55, 2035-32, 2025-23.50, 2018.50-16.50
the major resistance levels: 2128.50-29.50, 2134.50-36.50 and none

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