Trading plan for May 19, 2015

150518-ES-dailyES broke its 2119.75 resistance and closed above it yesterday. The volume was very light. In fact the volume has been declining during the entire rally.

Today we want to see a continuation high to confirm yesterday’s breakout. The daily momentum support is lying in the 2101-2089 zone and MACD indicator still gives a buying signal. The market sentiment still is bullish. If ES can hold above 2116.50-12.50 zone during overnight trading, it is likely to move up to 2136.50-44.50 area. But 2136.50-44.50 zone is a 1.618% Fibonacci extension of the breakout leading to the 2088 to 1970 range. Some profit taking should be expected there.

Today and tomorrow could produce a wild day with relatively large range. ES may go up first in early sessions and sell off in later sessions. $VIX option will expire today. Headwinds and tailwinds are operating simultaneously and they are likely to swing the price back and forth.

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Hi . Here is the download link for the full analysis, including the buy/sell levels.150519-plan

The major support levels: 2103-06, 2092-89, 2081.50-79.50, 2062-59.50
the major resistance levels: none

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