Trading plan for July 7, 2015

150706-ES-dailyThe ES gapped down overnight after the Greek referendum resulted in a big NO! to the creditors, but North American markets quickly recovered.

The decline stopped just above the March low and recovered half the loss by the time the day session opened, and most of the other half by the close. Eventually the ES was able to close with only a four-point loss. It may have been an historic event in Europe, but US equities brushed it off.

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Here is the member content for Tuesday. Download the full trading plan here: 150707-plan

Today the 2075 level – the 10-day moving average line – will be key. A move above it will be bullish and will prompt more shorts to cover. The price could be pushed up to 2083.50-86 or higher up to 2093-95.75 to fill the June 26 unfilled gap. At the same time it can give final confirmation that 2034-30 should be short-term bottom. But if ES losses its support at the 2046 level again today, it could go back down to 2030-28 to test Sunday night’s low.

Yesterday advancing volume exceeded declining volume. As long as the yearly pivot level 2054-55 holds up, the ES should attempt to move up further today. Two event to watch: the Eurogroup meeting Tuesday and the FOMC minutes Wednesday.

Short-term — Neutral
MEDIUM TERM — Bullish
LONG-TERM — Bullish

The major support levels: 2043-30, 2018-21, 2006-03, 1980-75
the major resistance levels: 2085-86, 2093.75-95.50, 2105-06, 2112.50-14.50,

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