Yesterday morning I was looking for a test of the SPX 50 hour MA in the 2171/2 area and it was tested exactly at 2172 dead. SPX rallied there and ES has made further gains overnight. A lot of 5 & 15min buy signals fixed on various charts and it may well be that low holds and that the move up into a new all time high has started.
I do have a concern though, which is that the double top target wasn’t hit. It may be that won’t be hit, but until we see a conviction break over falling wedge resistance, which closed yesterday at 2178, then that is a possibility. SPX 15min chart:
Yesterday’s low was three handles above the daily middle band retest and that may well be close enough. there is very strong support in the 2166-72 range and as long as that support holds we should see a new ATH. On a sustained break below with a daily close back under the daily middle band the high could already be in, and I’d be looking for a 4%+ retracement. SPX daily chart:
If we do see the new high Stan & I are looking for, then that would likely be a grind up into a high in the 2190-2210 range sometime next week. If support holds today then we’ll see how that goes.