Trading plan for Sept. 3, 2015

150902-ES-dailyES formed an inside day yesterday to wait for today’s ECB conference and tomorrow’s non-farm payroll report.

Later in the afternoon Wednesday the Beige Book was released and showed that few members favor hiking rates in September. The prospect of more free money encouraged buyers to push the price to the high end of the trading range for the close.

The market is moving into the pre-holiday bullish period. The pop shouldn’t be surprise traders. In Europe, the ECB may provide more liquidity to stimulate their economy, and that could help to hold the ES inside a big triangle pattern range.

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The first resistance will be lying around the 1959.25-65 zone. A move above 1966.50 could run sellers’ stops and push the price up to the 1978-80 zone. A break below 1925 level will trigger buyers’ stops and could lead the price to drop to fill yesterday’s gap at 1916.

The struggle going on during the regular hours trading is intense. After the Labor Day holiday, most of the traders are back at work. The closing price for June was 2054. The ES may go up there first before it resumes the move down to retest the August 24’s low.

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

The major support levels: 1900-03.50, 1850-45, 1828.50-25
the major resistance levels: 1992.75-95.50, 2012.50-2013.50 2032-2035

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