Trading plan for Oct. 23, 2015

ESZ5 daily chart

ESZ5 daily chart

ES launched a strong attack on the Bears yesterday after the European Central Bank hinted that more stimulus is on the way.

We had a strong uptrend day movement yesterday. The price not only broke above the 200-day moving average line, also it closed near our yearly pivot level in the 2055 area. It confirms that 1831 is the low of this year.

The 20-day moving average line also crossed above 50-day moving average yesterday and gave another buying signal.

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Today is option expiration day. The buying side momentum will continue to be strong. ES likely will hold up above 2021.75 level and prevent the price from filling yesterday’s gap. We will continue to see “Buy the Dip” behaviors. The 1950 level could be the low for the rest of year.

There is unfilled gap at 2072.75 created on Aug. 20, If ES moves up to fill this gap, we will probably see “a profit taking” move. But any drop into 2021-23 zone will be bought by new buyers.

Ouitlook

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

Support and resistance

Major support levels: 2005-02.75, 1992.5-87.50, 1950-56, 1928-29.50
Major resistance levels: 2065-66.50, 2072.75-75.50, 2088-89.50, 2099-2103