Hi . Download the full trading plan here: 160204-plan
ES had strong selling in the morning sessions and reversed strong in the afternoon session. At the end, ES recovered the loss and gained 11 points for the close. Many thanks for the oil rally.
Today 1885.50-1887.50 zone will be the key zone. As long as it holds up, ES still could move back up to yesterday’s high area and challenge higher up to 1929.50-31 zone. But a failure to break above yesterday’s high could lead the ES to stay inside yesterday’s range and make an inside day move.
It looks like ES is imitating the Aug and Sept. correction move. So far the pattern is similar and movement is similar. We may still see a spike high before price pulls back down later again.
PMO indicator still moves up and the buying signal is still there even it doesn’t move fast. This could encourage the buyers to enter at low and sell at high.
Short-term === Neutral
MEDIUM TERM === Neutral
LONG-TERM === Neutral
Major support levels: 1850-45.50, 1830-1825, 1816-1818, 1800-1795
Major resistance levels: 1956.50-55.50, 1967-69, 1975-82