Trading plan for Oct. 27, 2016

161026-es-daily

ESZ6 Oct. 26, 2016. Daily chart.

ES gapped down at open, but quickly found support at the 2125 level and followed oil price rally back up to fill the gap at 2138. Unfortunately ES couldn’t hold up the gain, and sliding back low for closing. This is a typical Wednesday option game move.

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Today ES could continue whipsawing. It could go down first and later move back up again. 2120-18 is an important area to watch. Holding above it could lead ES to test the 2140-45 resistance zone again.

Daily PMO is in negative territory and STO indicator has an overbought condition. Both are not favorable to the buying side, and indicate that internal buying strength is weak, and lower lows should be expected.

Outlook

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

Support and resistance

Major support levels: 2112-14, 2106-03.50, 2098-01.75
Major resistance levels: 2156.50-58.50, 2164-62.50, 2171-72.50