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.
Download the trading plan here: 151118-plan
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.
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