Trading plan for May 28, 2015

150527-ES-dailyES had an inside day yesterday, pushing the price back above 2119.25, the April high. The price action was bullish.

In the past several days we mentioned that ES needs to pull back before it can go higher. Now 2090.50-2089.50 could the low for the pullback leading to the next upside target around 2166.25-2178.50.

On Tuesday ES hit 2096; on Friday we may see the ES pull back one more time to retest 2096 if it stays within Wednesday’s range (2125-2101) today. If the futures stay below 2125 and grind slowly back down to the 2110-07 zone there’s a chance it will drop further to retest 2096.

However a move above 2128.50 today could eliminate a return to 2096, and the ES could then move up to test the previous high at 2134.

Today has lots of key economicreports and two Fed members speaking. All of them can influence the price movements.

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