ESU6 July 18, 2016. Daily chart.
ES made an inside day by trading inside Friday’s trading range, the second inside day in a row, but still closed at a new record high close. The money inflow continues to help hold up US stock markets. The sideways move shouldn’t surprise our traders.
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Hi . Read or download the full trading plan here:
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2134-26.50 is the current major support zone. Whether ES can pull back to re-test that level depends on the big fund managers.
So far, those fund managers who did not get on board early have been trying to catch up to the US stock market rally since the July 13 breakout occurred. A pull-back – if they can arrange one – would give them a chance to get in.
The predicted upside targets for this break-out could be around 2184-89 and 2215-16. In order to reach those targets, ES has to hold above 2075-72 and continue building support above it.
The trend is up and bullish. Buying the dips will continue.
Outlook
Short-term === Bullish
MEDIUM TERM === Bullish
LONG-TERM === Bullish
Support and resistance
Major support levels: 2120-21, 2112-14.50, 2100-1997.50
Major resistance levels: 2169-68, 2175-78.50, 2185.50-87, 2195.50-93.50