Trading plan for Jan. 21, 2016

160120-ES

ESH6 Jan, 20, 2016

ES had a big gap down at the open under the influence of a big overnight sell-off in the Asia market, The price not only broke last year’s support at 1831 in the morning session, it also made new lows at the 1805 area at lunch time. But shortly after noon buyers showed up and pushed the price above last year’s low for closing.

Based on the closing, ES is still vulnerable to further declines. The closing price still was under last September’s low at the 1961 level. There is still a chance for ES to move back down today or next Monday to retest the low.

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