The ES struggled to hold the price up until Atlanta Fed President Dennis Lockhart speculated on the likelihood of an interest rate increase in September. The ES slipped to the low — although it stayed above Monday’s low — and closed at the low end of the daily range.

Because of the summer vacation season, when a lot of traders are away and the volume is light, the market is vulnerable any external comments or events, as we saw Tuesday. It is pretty easy to change the short-term direction, at least temporarily.

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Here’s the member content for Wednesday. Download the trading plan here: 150805-plan

Today the 2080-78.50 zone will be very important again. Holding above it will give buyers one more hope that the possible bullish inverted H&S pattern may still work. If ES can’t move above 2088.75 line during overnight trading, and breaks down that key zone, it is likely to go lower toward the 200-day moving average area again.

ADP employment will be released early today before the US market opens. The report may add more bearish sentiment to the market. We may continue having a decline day if ES fails to break out 2093.75-96.25, yesterday’s resistance zone.

Short-term — Neutral
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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