Trading plan for Sept. 2, 2015

150901-ES-dailyThe ES resumed its decline yesterday, with a sharp drop overnight that didn’t allow the buyers any chance to hold the price up. The New York Stock Exchange invoked Rule 48 (for the fourth time in two weeks) which is designed to smooth out selling and facilitate orderly markets. It didn’t stop sellers from liquidating their long positions.

The volume was still heavy on the selling side yesterday. Price made almost a 60% Fibonacci retracement from last week’s bounce. But the downside trend hasn’t completed. This short-term and intermediate-term correction may last a little while longer, with an eye on the next Fed meeting on Sept 17. 2015.

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Today the 1926.50-29.50 zone will be the key. A move above it could lead ES to move up to fill 1944.25 gap. A break below 1890 could lead ES to retest 1875-60 or lower to 1850. But we could see price to bounce from low.

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

The major support levels: 1850-45, 1828.50-25, 1803-1799.50
the major resistance levels: 1992.75-95.50, 2012.50-2013.50 2032-2035

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