Trading plan for Nov. 12, 2015

ESZ5 Daily chart

ESZ5 Daily chart

ES ran up during overnight trading to anticipate ECB president Mr. Draghi’s speech. But his speech didn’t encourage the buyers to stay on. Instead ES slipped after the US market opened. ES not only gave up overnight gain, it also gave up 60% of Tuesday’s gain.

Based on the daily chart, ES remains inside the 10EMA and 20EMA lines. The 20EMA line is above 200SMA line, both will act as strong support for overnight trading.

There are lots of economic reports being released before the market opens, and the Fed Chair, Janet Yellen will speak at 10am. It will be interesting to see in which direction the ES goes.

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The 2062 level will be the first focal point. A move below it could cause a stop run and push the price down to test 2055, the yearly pivot level. If it turns out to be a strong down trend day, ES could go even lower if the 2055 level is breached.

The 2050 line area is a psychological support area, also should be a key support line for Friday’s weekly option expiration.

Any failure to move below 2055 level and a move back above 2064 could trap the shorts and push ES back above 2070-75 zone.

Outlook

Short-term — Neutral
MEDIUM TERM — Bullish
LONG-TERM — Bullish

Support and resistance

Major support levels: 2052-54.50. 2035.50-32.50, 2025-23.75
Major resistance levels: 2097-95, 2114.50-16.50, 2112.75-23.50