Trading plan for Oct. 13, 2016

161012-es-daily

ESZ6, Oct. 12, 2016. Daily chart.

ES successfully held the price below the broken support line at 2141 yesterday. It tried to stay in the green most of the day, but the upside momentum was not strong enough to keep price up for the closing. It mainly demonstrated a consolidation behavior.

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The daily PMO indicator declined more yesterday along with the slow STO indicator. That means that ES still is vulnerable to the downside.

Today we could see a strong trend day if ES breaks below 2122-21. September’s low 2100 is still what we expect as the current downside target.

Thursday and Friday could make a lower level for next week’s major monthly option expiration. We should watch for the short-term bottom in those two days and expect a decent bounce next week.

Outlook

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

Support and resistance

Major support levels: 2118-21.50, 2110-08.50, 2103.50-01.75
Major resistance levels: 2164-62.50, 2171-72.50, 2181.50-78.50, 2188-90.50