ES had a continuation high move yesterday; it not only broke its 2079.75 current month high, it also managed to hold the gain to close at the high range.
Today yesterday’s breakout zone 2077.25-79.75 will be a key area to watch. As long as the ES remains above this area for closing, the short-term outlook will be bullish.
Read or download the full trading plan here:[gview file=”https://www.naturus.com/wp-content/uploads/2016/05/160526-ES-plan.pdf”]
So far ES is traveling inside a three-month range (2105-2035 with a spiking high at 2111.75 and low at 2022). We may see a brief pullback move today, but as the daily PMO indicator turns bullish, buying the dips at the major support areas will be the strategy.
The 2055-45 zone is currently the short-term major support zone.
The range top area 2105.50-2112.50 will be current resistance zone. In the ultra-short-term, that resistance could hold the ES down for a while, but for the long-term, it may not. A break above 2115.50 could trigger second bullish wave up.
Short-term === Bullish
MEDIUM TERM === Bullish
LONG-TERM === Bullish
Support and resistance
Major support levels: 2055.50-57, 2035.50-37, 2028.50-31.50, 2021-23.50
Major resistance levels: 2099.50-2103.50, 2112.50-10.50