Trading plan for Oct. 29, 2015

151028-ES-daily

ESZ5 daily chart

The ES had a busy day: up 19 points from the overnight low, down 24 points in 15 minutes on the Fed’s non-announcement, then back up 35 points into the close. We have had weeks with less movement.

After the usual Fed statement – no rate increase today, maybe one next month – the ES found its major support at the 2055.50 level, our yearly pivot, and bounced strongly up to the close.

Now ES has had 21 days rally from September’s low at 1861 with 224.25 points gain. Is it going to rest today or tomorrow?

We may see a small pullback, but the upside momentum is still strong, and the short-term uptrend may not change so quickly. We will continue to see “but the dip” moves until next week.

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The 2055 level is our major support line for the remaining two trading days of October. ES needs to close above it for the end of month.

2093-89.50 is the current resistance zone. As long as ES doesn’t go above it, consolidation to the end of Friday is possible. But a move above 2096.50 could push ES up to 2101-03.50, which will encourage the buyers to hold the price up to close above the resistance on Friday.

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