ES closed higher on the first day of March. It decisively broke the neckline of the double bottom pattern and held above the 50-day moving average line. The price action was bullish and confirmed by volume.
The rally could continue today if the early morning sessions have some minor pullback. The 50-day moving average line is likely acting as support and will help to hold the ES up.
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The major resistance lying ahead will be last Dec’s low 1983.50 and the 200-day moving average line 1998.50.
PMO is near its neutral area. We may see a decent pullback after ES tests those key resistance lines.
CBOE issued a new option product on the SP500 cash index on March 1, 2016, called the “Wednesday weekly.” This option will expire at 4pm every Wednesday. If it becomes popular it could disrupt price movement. We will watch it carefully and inform our members.
Short-term === Bullish
MEDIUM TERM === Neutral
LONG-TERM === Neutral
Support and Resistance
Major support levels: 1928-30, 1912.50-11.25, 1998.50-96.50, 1985-87.50
Major resistance levels: 1986-88.25, 1995.50-98.50, 2007.50-08, 2018.50-21.75