Trading plan for Dec. 10. 2015

151209-ES-daily

ESZ5 Daily chart

ES suffered a loss for a third straight day. It not only failed to hold up the gain made in the morning session, but it broke several major daily momentum support lines (20 and 200ema) by closing under them.

Today is a rollover day. We may see ES has one more push down to test yesterday’s low or lower around 2025 line to end the ultra-short-term declining. If ES has a bounce first, it is likely to see the sellers again under the 2073 line.

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The low level of the triangle pattern at 2025 needs to be watched carefully today. A failure to hold up ES — by closing under it on Friday — will be bearish. That indicates a short-term top has been posted. As long as yesterday’s low holds ES up, a small bounce back up to 2064-66.50 could be seen again. This time the 2075 level will act a resistance line. This line needs to hold ES through Friday until daily indicators move into oversold territory.

Outlook

Short-term === Bearish
MEDIUM TERM === Bullish
LONG-TERM === Bullish

Support and resistance

Major support levels: 2030.50-32.50, 2019.50-22.50, 2006-03.50
Major resistance levels: 2088-89.50 2105-08, 2114.50-16.50, 2121-23.50