Daily Middle Band Backtested

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Yesterday morning’s bear flags broke down harder than expected and on SPX the move delivered a hard test of the daily middle band. That’s not inherently bearish as long as that holds as support and it did. Unless that changes the obvious target remains a full retest of the all time high. SPX daily chart:

170906 SPX Daily

Nothing so dramatic on RUT, with just a modest backtest of the 100dma. I’m very much wondering whether RUT is going to deliver an all time high retest with the ATH retest on SPX. RUT daily chart:

170906 RUT Daily

The ES, NQ and TF futures charts below were done an hour before the RTH open for Daily Video Service subscribers at theartofchart.net. If you are interested in trying our services a 30 day free trial is available here.

ES has broken possible bull flag resistance, but without any significant follow through so far. The morning low was a backtest of double support at the weekly and monthly pivots, and those held perfectly. ES Sep 60min chart:

170906 AM 1-EQI ES Sep 60min

NQ retested double support at the weekly and monthly pivots more aggressively but they held nicely. Falling/flag resistance has also been broken on NQ but again with no follow-through so far. NQ Sep 60min chart:

170906 AM 1-EQI NQ Sep 60min

The setup on TF could still be a bear flag forming. Nice backtest of the weekly pivot at the low this morning. TF Sep 60min chart:

170906 AM 1-EQI TF Sep 60min

Overall I’m not seeing anything here yet to make me think that the next move isn’t a retest of the all time high on SPX. No sign yet that the open bull flag target there on SPX isn’t going to happen. First support is the weekly and monthly pivots marked on these ES, NQ and TF charts. After that it is key that SPX holds the daily middle band on SPX, currently at 2451/2, on a daily closing basis. On breaks below an alternate more bearish scenario might well be playing out.

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