Trading plan for Dec. 8, 2015

151207-ES-daily

ESZ5 Daily chart

The ES fell yesterday to the major support at 2065 we mentioned in the weekly preview, then retraced 50% of the loss before losing momentum again. It finally closed 7.50 points below Friday’s close. In addition, it still hasn’t closed its 2088.50 gap.

There is a larger triangle pattern on the daily chart. Even though it is considered a continuation pattern for the buying side, it still has lots of room to move down. The daily moving average lines (20/40ema) will create more choppiness as the price moves around them.

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Today ES could go in either direction. The price could go back up to the 2088.50-90.50 zone to fill yesterday’s unfilled gap if overnight trading manages to hold above 2074.50 level. Otherwise it could go back down to yesterday’s low area and perhaps lower to challenge the 2057-55.50 zone.

The four-year uptrend line remains the resistance line for today. As long as ES stays under it, the ES is likely to repeat yesterday’s range again.

Outlook

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

Support and resistance

Major support levels: 2050-45, 2030.50-32.50, 2019.50-22.50
Major resistance levels: 2088-89.50 2105-08, 2114.50-16.50, 2121-23.50