Trading plan for Nov. 18, 2015

ESZ5 daily chart

ESZ5 daily chart

ES had a strong rally in early sessions as the street cheered for solid earning from Wal-Mart Stores and Home Depot. However oil remained low and GOLD tanked and broke its major support. The SP500 index was dragged down.

Later reports of a bomb threat in Germany sent price down further. At the end, the rally gave back all the gains; the ES only had a one-point gain from yesterday’s close.

Today the FOMC minutes will be released at 2pm. Everyone will be looking for a clue about the Fed’s plans for a rate hike, if any.

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Before the report, 2056.50-55.50 zone will remain as a key zone for overnight trading. A move above it could lead ES to retest yesterday’s high at 2063.50 or higher up to 2069-75 zone.

A failure to move above it, but instead of break below 2037.50 level, could lead ES down toward 2030.50-29.75 or lower toward 2019.50-23.50 to retest Monday’s low.

Any thing can happen in the current situation. The Street is nervous about political events and is reacting to uncertainty; on the other side the PPT will work to prevent the market from crashing.

Outlook

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

Support and resistance

Major support levels: 2030.50-32.50, 2021.50-23.75, 2012.50-14, 2006-07.50
Major resistance levels: 2075-78.50, 2097-95, 2114.50-16.50