Trading plan for May 22, 2015

150521-ES-dailyES had a pullback move overnight, but recovered in the day session and held the price above the weekly breakout zone 2119.75-15.00 well in the early sessions. It closed near the high level again even through the volume was very low.

Today is Friday, and all eyes will focus on Fed Chair Mrs. Yellen’s speech this afternoon. The FOMC minutes revealed that few members want to hike interest rates; the majority favor postponing a hike to September, December, or next year, based on weak economic reports. So the aggressive buyers continue buying on the dips, but with more caution than before.

2119.75-2115 zone will remain a key zone for today’s trading. At the same time the closing price for the day needs to be above this zone to maintain the bullish outlook for next week, which contains the Memorial Day holiday. ES could move up to 2034-36.50 zone if overnight trading holds up 2126.50-25.50. But at the end, we may still see a pullback from whatever high level is made in the early sessions.

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