Trading plan for Oct. 28, 2015

151027-ES-daily

ESZ5 Daily chart

Today looked a lot like yesterday in the ES. The futures spent most of the day in negative territory but rallied in the afternoon to close just 1.75 points below the previous close. A second losing day, true, but still a minor loss.

After the market closed, Apple reported better than expected earning for the third quarter, mainly based on booming Iphone sales in China. Despite the results the stock – up 9% year-over-year, but down 6.9% from the 2015 high – stayed mainly unchanged or down slightly in after-market trading.

Today is FED policy announcement day. After two mild consolidation days, ES should be ready to have a strong intraday move. The Fed statement will have a big influence on the ES. Traders should watch to see which direction ES goes first after the announcement.

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2074.50-78.50 is the first resistance zone and 2088.75-93.50 is the second resistance zone. ES shouldn’t go beyond 2093.50 line today. However ES should stay above the 2025 line.

2038.50-35.50 first support zone and 2025-23.50 is second support zone. As long as ES doesn’t go below 2023.50, “buy the dip” on weakness and “sell the pops” when the price moves up will be seen today. But anything can happen on FOMC days. So trade with caution.

Outlook

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: 2072.75-75.50, 2088-89.50, 2099-2103, 2114.50-16.50