ES broke its narrow range (between the 20/40ema lines) yesterday and went higher to just below 2079.75,– this month’s high — on relatively high volume.
Read or download the full trading plan here:[gview file=”https://www.naturus.com/wp-content/uploads/2016/05/160525-ES-plan.pdf”]Today the 2056 breakout line should act as major support. As long as ES stays above it, the odds favor the upside and price is likely to be holding up until the market closes.
A break above 2083.25 will be bullish again and the ES could then go higher up to 2093.50-90.50 or further up to test the 2100 level in the coming days.
But if ES stays under 2083.25 the price could attempt to pull back into yesterday’s daily range breakout level at 2056 to bail out yesterday’s shorts.
The PMO indicator stopped declining and is getting ready to move up, which is a bullish sign. The Slow STO indicator continues moving up, which is also a bullish sign. Both suggest the price could go higher.
Therefore, buying on pullback will be seen today again.
Short-term === Bullish
MEDIUM TERM === Neutral
LONG-TERM === Bullish
Support and resistance
Major support levels: 2035.50-37, 2028.50-31.50, 2021-23.50, 2009-07.50
Major resistance levels: 2085-83, 2099.50-2103.50, 2108-10.50