Another early morning stall at resistance greets us today. Formations are bullish but tired so I suspect a pullback into support regions before a return to any upside motion intraday. A breach of 2089.75 will project us up into 2097 and perhaps 2100 – but if that happens at the offset, charts will not hold that expansion.
Near term S&P 500 support lies beneath near 2068 region and near term S&P 500 resistance near 2089 region.
Breaches are likely to retest before continuing. Notice the example of this with my commentary around 2064 yesterday. In yesterday’s case, the chart spent 3 hours in the region retesting the area before advancing.
Shorter-term time frame momentum indicators are bullish, and higher still than yesterday’s. Longer cycles are flattening, and in upward trending territory.
S&P 500 Futures Chart (with upside levels heading into this week)
RANGE OF THURSDAY’S MOTION
CL_F –The chart is attempting recovery but with the continuing builds and the strong dollar, it has an epic battle on its hands to recover. We begin our 5th day near 42. Though the chart tries to break and hold above 42.27, it keeps rejecting the area. The edges of that rejection zone are now near 42.79. If we breach 42.27, we should look for a test near 42.9 to 43.3, though we stopped shy of that yesterday. Momentum on short time frames are still mixed. Levels to watch -42.45 to 44.79 are wide potential expansion targets upside- see premium blog for tighter levels. 41.65 to 38.47 are potential expansion targets downside- see premium blog for tighter levels.
ES_F —Upside motion is best setup on the bounce off the support line near 2082.5. If the buyers have limited power, the chart will fail to breach and hold 2089.75. A hold of 2082.5 should deliver 2084.75, 2087.25, if it holds over 2089.75 – then 2091.5, 2094.25, and potentially 2097.25, and 2100.25 as targets. For big motion outside this level, or other intermediate levels, see the blog post in the Platinum Level protected area at The TradingBook.com
Downside motion below the failed retest of 2082, or at the failure to hold 2088.75 (watch momentum- that would be aggressive ) opens a short. Short trades should be staged into support and then cautiously watched after some profit is taken, until we fail 2045 on a retest. Buyers are still clearly in charge, though patterns look very tired. Retracement into lower S&P 500 support levels from 2081 give us the targets at 2077.5, then 2074.75, 2071.5, 2068.75, 2065.75
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