Trading plan for April 28, 2016

160427-ES-daily

ESM6 April 27, 2016. Daily chart.

As expected the Fed kept interest rates unchanged yesterday. The ES managed to hold above 2075 and closed 2.25 points in the green. Wednesdays have been green since the SP500 index Wednesday option was launched Feb. 26.

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This section contains the detailed buy/sell levels for Thursday.

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Today could have a strong movement since the ES has had four consolidation days. Price could attempt to go higher and reverse or attempt to go lower and reverse. Overnight the Bank of Japan action will have a large influence on European markets and the ES.

2085 is tomorrow’s option expiration key battle line. Staying above it will be bullish. ES could move up to 2104-05.50 zone to retest last week’s high or higher up to 2113-15.

Because ES is in its last day of the pullback process, there is a chance it will stay under 2096 and move below 2071 to trap low level sellers around the 2061-58.50 zone, and then reverse.

After the GDP report today, traders should pay attention to the market direction. If there is a gap up far away from yesterday’s high, look to short on strength and buy on weakness. If it gaps down at the open, look for a major support area to go long.

Outlook

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

Support and resistance

Major support levels: 2055-52, 2039-37.50, 2021-23.50, 2009-07.50
Major resistance levels: 2099.50-2103.50, 2108-10.50, 2116.75-19.00, 2135-30

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