Here’s the daily chart for the TF (ICE eMini Russell Futures) contract, September is the current front month:

Click on image to enlarge!

The trendlines in red highlight a perfect Gartley resistance pattern starting on July 7th into the high on July 27th. The target is projected by multiplying the entire swing by a value of 1.272, which places this at 560.60. Price has broken all Fibonacci support on the way to this target, and while there’s always the possibility of a double bottom, they’re seldom seen when the setup into resistance includes a Gartley pattern. On any bounce, it’s much more likely that resistance will hold for additional downside.

We’re monitoring the 45 minute chart for the most likely places for price to fail once again:

Click on image to enlarge!

Pre market trading shows that we’ll probably open above the initial intraday upside target at 606. The next strong resistance point comes in at 611.10. A break there would most likely take out the prior swing high on the 45 minute chart, temporarily flipping all of our intraday patterns to upside. That makes this .786 retracement level a key point of resistance. Should that break, the focus will be on the 623 – 626.30 resistance zone.

When the daily pattern is clearly to downside, with outstanding downside targets, we need to remain aware of any key intraday resistance and upside targets for a possible hold. While it’s fine to trade with the upside trend on intraday, the market is susceptible to more downside and rapid reversals at one of these levels are likely!

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