Trading plan for Oct. 5, 2016

161004-es-daily

ESZ6 to Oct. 4, 2016. Daily chart.

The market went down again yesterday which is why ES wasn’t able to generate a daily buying signal from PMO indicator. There was not much change on the consolidation move, but a new triangle pattern now shows up clearly.

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Today the ADP private employment report will be out early in the morning. The news could move the market and help ES to break its triangle pattern.

2135.50-33 is a key zone today. A break below 2132.75 could trigger selling and push the price down further toward 2123-21 or lower today. If ES triggers a deeper correction, the target will be lying above the 200-day moving average line at 2050.

But it has to deal 2100 psychology support first before ES gets there 2065-2050 area.

On the upside, 2165-62 will be the current major resistance zone. A move above it could force shorts to cover and push price up to 2172-75 zone.

Due to the triangle pattern, ES could have a break in either direction. But a bing-bang move still could be produced.

Outlook

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

Support and resistance

Major support levels: 2135-33. 2123-21.50, 2112-13.50, 2103.50-01.75
Major resistance levels: 2171-72.50, 2181.50-78.50 , 2188-90.50, 2200-01.50