Trading plan for Apr. 10, 2015

150409-ES-dailyES closed up 9.75 points, a 0.5% gain, after an early drop into the red. The 20- and 40-day ema lines overlap and acted as a strong support line to push the price back up to close near the high of the day yesterday.

Now it is more clear that ES is going for the D destination. Today the potential D area becomes a key line to determine whether the next move should be to the upside and a new high, or a pullback to form an E low within the broad “wedge” pattern.

The 2097-2100 zone should be the D top area. A move above 2102 level and a close above it today will breach the “wedge” pattern; in that case higher highs could be seen in the following week.

Remaining under 2097-2100 could leave the ES around Thursday’s high or move it lower to the 2078-75 zone.

The 2071-69 zone could be today’s major support. As long as this support zone holds up, odds will favor the upside. Also whatever the lowest low made today or yesterday could be the low for next week, the major option expiration week for April.

Paid members, download the full trading plan with the buy/sell numbers here: 150410-plan