It was another strong overnight session for the bulls, powered by a relief regarding AAPL earnings and optimism about the Fed announcement today. To help assess where we stand, let’s take a look at the ES using some tinted ranges.
The green tint above has been the range from support at the fabled 2626 up to present price levels. We are now just pushing into the cyan range above it, which seems a sensible target for whatever Fed rally might ensue.
Should we cut above this cyan zone (about 2680), then the bulls can strap on more rocket boosters. The magenta area shown below becomes a relative easy field to traverse. And, should they conquer that, the very wide yellow zone opens up, which would probably be powered by good news regarding the US/China trade “war”.
The fact that 2626 has offered such strong support has provided by means for such a potential quartet of bullish lunges. It would take something genuinely disappointing from the Fed to be of aid to the bears at this point, because the support at 2626 has proven itself to be so formidable.
On a wholly different note, be sure to read about the latest version of SlopeRules, which we posted late last night.