[james_gsx]

Here are two charts, one with no annotations and one with simple support and resistance lines. The red line is the 8 EMA which is usually too fast for my taste in the index markets (I use it for other markets). I typically pay more attention the blue line, which is the 21 EMA. You can see how it's providing support for the last 3 candles then todays "hammer". I drew in the line that would show the current support used to be resistance, which is also something to take note of.

As far as my trading plan goes, I would be more willing to buy a hammer at support especially if there is more than one area to support (the line I drew and the 21 EMA)