Drifting Up

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The third day of the 5dma Three Day Rule came and went without a break down, and SPX closed yesterday above the daily middle band in a clear win for bulls. That needs to be confirmed with another close above the middle band today, and that is currently at 2364.

On the hourly chart the 50 hour MA has been converted to support, currently at 2353, and SPX is trying to do the same with the 100 and 200 hour MAs, currently at 2362 and 2366 respectively. If those convert too then the next target will be falling megaphone resistance, currently in the 2377 area, and I’d note that the falling megaphone is a likely bull flag on the bigger picture, so if that megaphone resistance breaks then the minimum target is then a retest of the all time high. SPX 60min chart:

170331 SPX 60min

If we see a confirming close above the daily middle band today, currently at 2364, then that opens up a possible test of the daily upper band, currently at 2390. SPX daily chart:

170331 SPX Daily

On ES falling megaphone resistance is a little higher in the 2380 area. ES is still on a 60min sell signal and there is still a decent fail scenario that I’d start to consider seriously on a break below yesterday’s low at 2353. ES Jun 60min chart:

170331 Lunch ES Jun 60min

NQ looks tired here and there is a decent looking possible double top setup in place if we see some weakness here. NQ Jun 60min chart:

170331 Lunch NQ Jun 60min

TF is close to reaching the double bottom target at 1395. TF Jun 60min chart:

170331 Lunch TF Jun 60min

Bulls want that confirming close above the daily middle band today to clear the way to further upside. Bears want a close at least two handles below it to signal a clear fail. The rest of us watching would like the tape to move a bit just to confirm that there isn’t a huge party to which all other market participants were invited during RTH today, but managed to keep secret from us. 🙂

Stan and I are doing our monthly public Chart Chat at theartofchart.net on Sunday afternoon and all are invited. Attendance is free and at that price I can guarantee that will be the best value TA for money that you don’t spend this weekend. If you’d like to attend you can register for that here. Everyone have a great weekend.