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Index prices are maintaining the upside pattern on daily and intraday charts, higher highs and higher lows. Since we're getting closer to the initial daily upside targets, traders should be aware of these levels since the markets are also considered extended (overbought on the current swings) at those targets. Once these levels are met, the patterns to upside will be considered complete. That doesn't mean that we'll automatically plummet, but it does make the market more susceptible to deeper pullbacks.
Here are the daily charts:/p>
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ES initial target 1266, the bold green 1.272 price extension. Beyond that, the key resistance in the way of a new swing high is the blue .786 retracement at 1298.25. That could prove to be a formidable obstacle!
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11978 is the initial target on YM. Key resistance beyond that point, 12173.
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On NQ, 2413.25 is the initial target. In this case the key resistance in the way of a new high has already broken, and the stronger target is at 2556. I’d still be on alert for at least a pullback from the initial target though.
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TF target at 770, with the next key resistance at 802.60.
The area between the target and next key resistance is what I call a “dead zone”. There will be no longer term targets to help “pull” price upwards until the key resistance breaks, so we’ll rely on intraday support and targets to let us know if the pattern is holding to upside.
For more from Mark including his “Chart of the Day”, visit MJBraun.net. |
