I was talking in my last post on Wednesday morning about the bull flag channel on SPX that then broke up with a minimum target at a retest of the all time high, and that is still unfinished business above that should be hit, subject of course to a negative development in the ongoing megalomaniac sociopath with an H-Bomb news stream. SPX 60min chart:
NDX made all upside targets last week at the retest of the all time high, but there’s still an open RSI 14 buy signal on the RUT daily chart that is likely to deliver some more upside and may deliver an all time high retest there of course. RUT daily chart:
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.
The key level on ES this week is clearly 2458.25, with both the new weekly and monthly pivots at that exact number this week. The action since the news gap down looks like a small bear flag forming so the odds are decent that level will be tested today or tomorrow. ES Sep 60min chart:
Similar setup on NQ with the same broken rising wedge and short term, likely bear flag forming. Again weekly and monthly pivot are close and in effect action as double support. NQ Sep 60min chart:
There is still an open 60min sell signal on TF, but I’m doubtful about that reaching the weekly and monthly pivot support area there. TF Sep 60min chart:
The pattern setup here is a clear retracement with unfinished business above, news permitting of course. Ideally that delivers a test of 2458.25 ES today that holds, give or take three or four handles, and then delivers the all time high retest later this week or early next week. I’m assuming that we see that retest until demonstrated otherwise but I’m not expecting much more than that. Hopefully that gets clearer on the way there.
Stan and I did our monthly free public Chart Chat webinar at theartofchart.net on Sunday,and if you would like to see the recording then you can see that on our September Free Webinars page. This week’s edition of The Weekly Call is posted and the model portfolio there is up 205% in the ten months to August 31st, now slightly over our target minimum 200% return over the first year. As that target has been reached we’re thinking of making the strategy there a bit less conservative. That’s a free weekly service and if you trade futures I’d suggest adding it to your reading list.