Trading plan for July 14, 2016

160713-ES-daily

ESU6 July 13, 2016. Daily chart.

ES had a gap up at the open, but quickly made a minor retracement for an ultra-short-time-frame correction, which we yesterday predicted could happen. At the end, ES had only a tiny change. It made an indecision doji candle on the daily chart.

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The market will likely continue,grinding higher but there will be pauses for traders to take profit from their long positions.

The 2150 level could be the battle line for both sides. As soon as ES moves higher away from it, buyers will start to take their profit off the table and send the price back down around 2150.

But when price drops too far below that level, the buyers will show up again and push the price back near 2150 level.

We don’t think the ES will move too far from yesterday’s range; possibly a maximum of five points above yesterday’s high, or five points below yesterday’s low. That could be the Algo play for today..

Outlook

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

Support and resistance

Major support levels: 2120-21, 2112-14.50, 2100-1997.50, 2085-83.50
Major resistance levels: 2156.75-62.50, 2175-78.50

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