Today is rollover for the stock index futures. Let's focus on current support and resistance levels on the eMini Russell TF contract. The pattern is almost identical to what we're seeing on ES, YM and NQ too. Here's a current regular trading hours daily TF chart:

Click on image to enlarge!

The prior swing high, 733, held the Gartley resistance pattern discussed last week. But on the drop we can see that the key .786 support held as well. Note the bold red 50 CCI failed to penetrate below -100, letting us know that there wasn’t sufficient downside momentum to follow through to new swing lows.

Until we see a break of one of the .786 retracements (in bold blue) to one side or the other, we’ll have to be on the lookout for consolidation settling in on shorter timeframes too. The resistance at 716.30 is particularly interesting since a break would target 754.30, a new daily swing high. That would reinforce the daily pattern of higher highs/higher lows and generate considerable additional support for tests on any pullback.

Generally when a Gartley resistance fails to follow through with a hold of key support, it leads to a reversal in the opposite direction for new swing highs. So I’m looking for at least a test of that key resistance with the idea that a hold there would likely be temporary. While it’s a good level for a debate, the probability is that we’ll see a break and new swing highs. While that’s the higher likelihood, I prefer to let the charts tell us what’s actually happening instead of assuming anything. So let’s watch price action at that resistance level, 716.30, if tested!

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