On July 8th I wrote this article calling for a daily swing high to be established during the timing resistance phase from July 13th – 15th. If we step down to this 45 minute chart of the ES (CME eMini S&P futures contract), we can see that the current daily swing high was actually established near the end of trading on the 13th; about as close to the middle of that timing resistance period as possible:

Click on image to enlarge!

The last attempt to overtake that high, the rally on July 20th, failed at the .786 resistance of the current high to low swing. We know that this level is particularly important when breaking it would point to a 1.272 extension target, in this case 1107.70, on the other side of a high made in longer term price and time resistance. Yesterday’s drop couldn’t penetrate below the opposing .786 support at 1059.95 either, indicating that this market isn’t ready to commit to downside either. Holds at opposing .786 levels are indicative of chop, and we’ll need to see a break of one of those .786 levels in order to confirm directionality on the daily charts as well. Meanwhile we’ve had decent daily ranges within these levels for intraday trading, but it would be wise to trade with extra care since this sort of consolidation can “trickle down” to shorter term charts.

If you’d like to see how the time and price resistance was established for the daily hold last week, I’ve prepared a short video here.

For more from Mark including his “Chart of the Day”, visit MJBraun.net.