Ordinarily when we don’t see a drop during timing resistance it calls for an upside acceleration. A close examination of the SPtimingRes chart shows why this has not been the case so far:

Click on image to enlarge!

While we’ve cleared through a strong timing resistance zone focused at the end of last week and start of this week, you can see the 2 ratios I’ve enclosed in red rectangles with the focus in place for today. And then of course we have the final timing zone coming up next week, with the 3 ratios focusing on 10/07 – 10/08. While it would be great to be able to narrow this down to a tighter time period, as we usually can with daily timing factors, this spread out timing resistance is what’s in place at the moment and it’s causing the sort of scenario which we often see when the intraday upside patterns are strong. Essentially chop! The daily and 45 minute upside targets are strengthened with the timing and serve as significant resistance, but the intraday support is holding too.

As usual we’ll monitor the 45 minute ES chart for any signs of a breakdown:

Click on image to enlarge!

At this point all support is holding and the next upside targets are the near overlap from 1150 – 1151.25. Any target strong enough to show up on a 45 minute chart needs to be taken seriously with the daily timing resistance in place, so the key to continued upside will be whether or not support holds on pullbacks.

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