Trading plan for Aug. 6, 2015

150805-ES-dailyES ran up overnight, opened strongly and continued to rally for the first hour after the market opened. Later it gave back 50% of the gain and closed near the 20- and 40-day moving average lines.

The closing price was not impressive. But the 2080-78.50 support zone still holds up and remains important to watch today. There was not much change from Monday to Wednesday. The ES whipsawed along the 20/40-day moving average lines and this behavior could continue until the price breaks one side or the other of the broad sideways range.

Member content

Here is the member content for Thursday. Download the trading plan here: 150806-plan

Today the 2083 gap may get filled if ES fails to move above 2098.50. The range may also get narrow (from 2098.50-2078.50) today to wait for tomorrow’s Non-Farm payroll. ES has had 1400 days without a 10% correction, and we are approaching the worst season. If ES can’t breakout top range 2136 level by Friday’s close, we will be watching for a short-term pullback next week.

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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