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Very nice AM reversal yesterday morning as expected though SPX didn’t manage a full retest of the ATH before a hard reversal overnight. SPX has managed a marginal break of yesterday’s low at the open this morning and has so far filled about half of the opening gap from 2363.81. If that gap fills then I’d expect a retest of the ATH at 2368.26, though that might well be the second high of a small double top, looking at the both RSI 14 and RSI 5 sell signals that have now fixed on the hourly chart. If the gap doesn’t fill then immediate support is at the open gap from Monday morning at 2351.16, and a fill of that gap might well open up a test of the current price floor in the 2339 area. SPX 60min chart:

170224 SPX 60min

SPX has now failed to hit the daily upper band for two consecutive days. That means that the upper band ride is over and unlikely to resume. That puts SPX in a likely short term topping process before a likely retest of the daily middle band in coming weeks and that is now in the 2319 area. That is rising of course so the longer that retest takes then the higher that target will be. SPX daily chart:

170224 SPX Daily

On ES there a possible H&S forming here that would have a target at established support in the 2331.5 area. If the SPX opening gap fills then that’s very likely a bust but if it doesn’t fill that’s in play here, and supported by the sell signals on the hourly chart. ES Mar 60min chart:

170224 AM ES Mar 60min

NQ has a very strong target at rising wedge support in the 5280 area. That wasn’t missed by a lot at the overnight low and looks like unfinished business below. NQ Mar 60min (pre-market) chart:

170224 AM NQ Mar 60min

TF formed and broke down from an H&S & has then rallied hard from the break. On a break back over 1400 I’d be looking for a full retest of the all time high. TF Mar 60min (pre-market) chart:

170224 AM TF Mar 60min

I’m really not feeling well today and am very glad that today is Friday. If you missed last night’s free educational webinar and would like to see it you can see that on this page here. Everyone have a great weekend 🙂