Trading plan for March 10, 2016

160309-ES-daily

ESH6 March 9, 2016. Daily chart.

ES went sideways yesterday. It had the narrowest range day since Dec 24. It is in contraction mode and tried to hold the price up.

So far the slow stochastic indicator shows ES has extremely overbought condition in the short-term. The daily momentum indicator (20/50ema) gave a buying signal two days ago. The PMO indicator is decelerating somewhat. The indicators conflict with each other, and could lead ES to go nowhere.

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This week was supposed to see a minor pullback. So far ES remains under its 200-day moving average line. Today 1994.50-95.50 zone will be a key zone. In order to go lower to test 1950 -60 zone, the bears have to hold ES under that key zone and prevent bulls from filling 1999 gap.

For the other side, 1968.75 was a breakout level on March 1, the buyers likely will want to hold up ES at that level to fight back. ES could continue going both direction like yesterday’s behavior. We have begun to roll over into the June contract and the market will be hard to read for a couple of days.

Outlook

Short-term === Bullish with overbought condition
MEDIUM TERM === Bullish
LONG-TERM === Neutral

Support and resistance

Major support levels: 1960.50-62.50, 1950.50-52, 1928-30, 1912.50-11.25,
Major resistance levels: 2007.50-08, 2018.50-23.75, 2033-35.50, 2050-55, 2075-77