Trading plan for July 12, 2016

160711-ES-daily

ESU6 July 11, 2016. Daily chart.

ES made an intraday high above last year’s high at 2134. The bulls did make their effort to push the price up, but after lunch time the upside momentum started to fade. At the end, ES closed under the 2134 level, and still has not confirmed a breakout to new highs.

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The lack of follow-through after ES made new highs is a warning sign. Even though indicators for all three time frames (long-term, intermediate-term and short-term) are bullish, the ultra-short-term indicators have been in an extremely overbought condition for a week and suggest the price in the top area.

Today 2125.50-2120.25 is a key decision zone. As long as ES stays above it, the Bulls will be able to fight for a move to a higher level. A move below 2118.50 level will be a little negative, and a further decline to retest the support zone at 2100-2103.50 should be expected.

Outlook

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

Support and resistance

Major support levels: 2100-1997.50, 2085-83.50, 2056-55, 2043-41
Major resistance levels: 2139.50-42.75, 2148.50-50.50, 2156.75-61.50

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