ESH6 March 7, 2016. Daily chart.
ES had a range move yesterday to consolidate Friday’s gain. The volume on the upside was thin. Most traders are cautious about the rally. The price just danced around the 200-day moving average.
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The 20-day moving average line has crossed above the 40-day moving average line. This crossing gives a buy signal for the intermediate term. It encourages the short-term buyers.
But the long term remains neutral and hasn’t given a final confirmation about changing the trend direction.
The PMO approaches last November’s top area. It may take a few more days to reach the extremely overbought territory. The sideways movement (2007.50-1983.25) still should be expected today.
ES may push up or down to run sellers and buyers’ stops by 2 points above 2007.50 or below 1983.25 to shakeout weak hands.
But a move above 1909.50 could push ES further up to 2018.50-23.50. A move below 1978 could lead ES drop down into 1965-60.50 zone.
Outlook
Short-term === Bullish
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