The ES spent most of the day in the red, pushed down by brutal earnings reports from some Dow heavyweights and the good-news-is-bad-news influence of dramatically lower Jobless Claims, which are thought to encourage an interest rate hike from the Fed. The Dow traded below the opening price for the year.
The DJIA industrial leaders got hammered down, with the exception of Amazon which announced a totally unexpected profit, and helped to hold the ES above its major key support zone. We are still interpreting the recent decline as just an ultra-short-term correction.
Here is the member content for Friday. Download the full trading plan here: 150724-plan
Today 2093.75 will be a very important line for the ES. To return to an upside movement, the ES needs to close above that level today. Closing near or below it will lead the ES further down next week. Today 2113.75-14.50 will be first intraday resistance zone. A move above it will be bullish, and could lead ES to back up to 2121.75-23.50 or higher.
Now ultra-short-term indicators are getting oversold again. We should expect yesterday’s low will hold up today.
Short-term — Bullish
MEDIUM TERM — Bullish
LONG-TERM — Bullish
The major support levels: 2095-92.50, 2085-88.75, 2062-64,
the major resistance levels: 2128.50-29.50, 2134.50-36.50 and none