At the start of yesterday’s session we were working with this daily S&P cash chart:

Click on image to enlarge!

By measuring the amount of time between prior pivots since the April high, with an emphasis on how much time it took before rallies failed, and multiplying these bar counts by specific Fibonacci ratios – we came out with an area of timing resistance bracketing last weekend. Price was also touching the 1.272 target of the prior low to high swing; a good place to look for a pullback or pause. The combination will often bring a dramatic decline. These levels were in place since last week.

And here’s today’s chart:

Click on image to enlarge!

We’re now approaching the symmetry support at 1086. Support breaks during yesterday’s session point to the initial downside target at 1076.80, which would break this important 1086 level. If we can see a close below the symmetry support (1086), which is a 100% price projection of the July 13th high to the July 20th low, it would disrupt the pattern and rhythm of the uptrend.

Here’s the equivalent on the ES daily chart:

Click on image to enlarge!

If this pattern can play out fully, and prior support breaks suggest that it will, the initial major daily target is at 973. I’d keep an eye out for a possible hold or strong interim bounce at 984 though too, since that target has been in place for a good deal longer We’ll probably face a speed bump in the form of a timing support test during the middle of next week, and I’ll calculate the specifics on that later today.

In my chat room we use the 45 minute chart to determine the strength of the trend, and to identify key levels which may have an influence on the daily pattern:

Click on image to enlarge!

Here we see the initial downside target at 1073, which would bring us that symmetry support break at 1083.75 on the contract. Again though, I’d like to see a close below that level to confirm that the pattern of higher highs and higher lows on the daily has been disrupted.

On any bounce, we’ll monitor for holds at key resistance in both price and time!

For more from Mark including his “Chart of the Day”, visit MJBraun.net and make sure to visit his Special Events page for details on an upcoming webinar.