A close examination of the Cash Russell 200 daily chart shows strong Fibonacci Timing resistance in place::

Click on image to enlarge!

Yesterday, September 15th, showed the same number of bars in the current rally from the August 24th low as the number of bars in the rally from July 6th to July 27th. It was also 1.618 (an important Fibonacci ratio) times the number of bars from the June 8th low to the June 21st high, also projected from the August 24th low. Today is also .786 times the number of bars from the July 27th high to the August 24th low. This puts the Russell within timing resistance parameters and we may see a pivot high established.

Adding to these timing ratios, price is also holding right below the .786 resistance from the July 27th high to the August 24th low. We know that in order to focus on additional upside targets, it’s essential to see a close above this level. If price is going to fail, it’s the prime spot for it.

While there are additional timing relationships for a possible high later in the month, we need to focus on this juxtaposition of time and price at the moment because the time and price parameters are strong and both are being tested simultaneously.

We’ll focus on our 45 minute chart of the TF (eMini Russell 2000 futures contract) during the trading session in order to determine whether pullbacks hold price and time support on intraday, or whether the pattern shifts to downside as a confirmation of time and price resistance holding on the daily. So far every pullback has held support and maintained the pattern of higher highs/higher lows, but given the strength of the daily resistance this may indeed shift over the next couple of trading sessions.

Here’s a current 45 minute chart with the strongest nearby price support labeled:

Click on image to enlarge!

For more from Mark including his “Chart of the Day”, visit MJBraun.net. Don’t miss Mark’s upcoming webinar on trading the Russell 2000 Mini Futures with Fibonacci and CCI during our Technical Traders Forum.