Now that we’re rolling the stock index futures contracts from December to March, it’s a good time to focus on the next set of daily targets on the CME eMini S&P contract.

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We’re opening quite close to the initial daily target at 1233.50. This is calculated by multiplying the last high to low swing by a factor of 1.272 and projecting that value from the low as shown with the trendlines. There’s a larger target though; 1251 is the 1.272 target of the April high to the July low, and this also overlaps the 1.618 factor of the more recent smaller swing. At that point, traders and investors working on a variety of timeframes, from swing to position trades, are likely to see this market as overbought. I’m looking to 1251 to serve as significant resistance on this contract, with the possibility of a smaller pullback along the way once we reach the 1233 – 1234 area.

On pullbacks we’ll look to our bold support levels on the daily and 45 minute charts to hold for additional buy side opportunities as these swings complete.

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