While we’ve been profiting from the current rallies on index related securities, it’s important to keep track of what might get in the way of these moves continuing as the daily charts extend to targets.

On the S&P cash index daily, we have what appears to be a clear path to the upside target at 1179. Timing resistance yesterday called for an interim high, and today’s session will show us whether this will be respected. The timing resistance is calculated by counting the number of bars in prior rallies and projecting this number, multiplied by specific Fibonacci ratios, from the start of the current rally.

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On the chart above, the timing factors are represented by the histogram below price. One of the major advantages of multiple timeframe analysis is that it allows us to take a longer term perspective. It’s often important to take a step back to find out how support and resistance may interact between our trading timeframe and the next higher timeframe. If your major area of interest is on the daily charts, a look at the weekly can prove more than helpful.

The weekly S&P cash index chart shows a major resistance zone immediately above current price. The last test of this area resulted in a corrective decline, and we’ll need to see if a retest can indeed break through this zone. At the very least it interferes with the idea of a smooth path to the daily target, and serves as an alert that the rally may not be as smooth from here.

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I’ve found that it’s extremely helpful to monitor the health of a longer term trending move by moving down to a 45 minute chart. So far the ES has maintained a strong pattern of higher highs and higher lows on the intraday, with support holding on each pullback since the February 5th low. First sign of longer term resistance being respected would be a break of this intraday support, and a pattern shift to lower lows and lower highs.

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The Dow paints a similar story, but with stronger timing resistance factors focusing on the first half of next week on the daily chart.

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Price is also holding at the 1.618 target of the final swing into the February 5th low. This should be an interim target, but with upcoming timing resistance it’s a factor to consider. The weekly chart shows a resistance zone similar to the challenge on the weekly S&P.

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But the 45 minute YM chart is also maintaining a clear upside pattern, as with the ES.

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How do we use this multiple timeframe information without getting confused by the conflicts? As long as the 45 minute pattern continues to hold support and respect prior swing lows, the upside scenario is intact. We’re aiming for the upside targets in bold on the daily charts. The timing resistance and the weekly price resistance can serve as a heads up for potential trouble in store though. The first signs of this would be a break below prior swing lows on the 45 minute charts. We’ll keep our eyes on those support levels to point the way!

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