Trading plan for July 22, 2015

150721-ES-DailyPoor earning reports from several blue-chip companies sent the Dow-Jones Industrial Average into the red all day yesterday. It also pulled down the SP500 and the ES as well.

Technically speaking, the short-term is too overbought due to extremely optimism in the past eight days. The rally was too fast and steep and made buyers reluctant to place new orders at the top end of a well-defined intermediate-term sideways range. The pullback should be considered as normal price behavior.

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Here is the member content for July 22. Download the full trading plan here:Β 150722-plan

Today all eyes will be on the key 2100-2095 area. This zone needs to hold up to allow the ES return to rally mode and challenge the 2125-35 resistance zone again. In the early morning sessions we may see a continuation low move if the price stays below 2114.50 during overnight trading.

In the later session the ES may reverse and rally again if the support at 2095 holds, and the price moves back above 2100. If ES does break below the 2095 line and trades into the 2090-88.50 zone, there is still not much to worry about – unless it closes below 2095. A close below the support could turn things around and bring the ES back down again in the subsequent days.

Short-term β€” Bullish
MEDIUM TERM β€” Bullish
LONG-TERM β€” Bullish

The major support levels: 2106-03.25, 2095-95.50, 2085-88.75, 2062-64, 2054-52
the major resistance levels: 2128.50-29.50, 2134.50-36.50 and none

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