In the webinar recorded this past Tuesday, one thing I showed was how to construct the Fibonacci support and resistance on the current ES daily and 45 minute charts. Here's an updated daily:

Click on image to enlarge!

The 1364 target was met on Monday May 2nd and is currently holding as resistance. We’re also holding the 100 percent price projection of the prior corrective decline projected from the new high as support at 1327.25. For a close up on the struggle between these levels, and clues as to how it will resolve, we can step down to the 45 minute chart:

Click on image to enlarge!

Price hit our intraday target zone starting just above 1356 on Tuesday. We constructed this chart together during the webinar too, and you can watch the recording if you’d like a step by step on how this was done. Now we’re hovering right around the key support level on this chart, 1332. Prior support breaks make it more likely that we’ll see this level break as well, but I still have it in bold on the chart since it’s a very significant point and a hold would likely lead to short term consolidation. Should it hold, the key would be whether or not we see a break of 1351.50 resistance. Holding between these bold levels would define a coil; consolidation potentially leading to chop on shorter term charts.

If it breaks though, we’re looking at a Gartley support pattern from 1306 to 1316.75 as labeled, and at the very least there would be a very high probability of reaching that initial downside target at 1316.75. This is useful information for intraday traders, and the start of a support zone for longer term traders to look for possible buy side entries if momentum indicators confirm a hold within that target price range.

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