Trading plan for March 24, 2016

160323-ES-daily

ESM6 Daily chart. March 23, 2016

ES gapped at open and held down for closing at lower trading range. Even though the volume was not large on a down day, the weakness is already showing due to the reluctance of investors to buy above the 2045 level.

This minor pullback could lead ES down to its 200-day moving average line, which is around the 2000 level if yesterday’s gap remains unfilled.

The PMO indicator on the daily chart starts to show some convergence, the fast line may turn down soon and give a selling sign. The Slow STO indicator shows an extremely overbought condition. It Also points to a pullback in process.

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