The market printed another inside Weekly bar, consolidating on the Highs, while no serious supply is seen. The market is currently right at the middle of the range it has been creating since the beginning of the year, the most random area for the price to be. The last two weeks have already proved that.
The nearest long term target area, is at 2300. This has been the target for the 2 Year Spring (false thrust down) bar of the years 2008-2009.
I would suggest joining the bullish trend only by taking out the all time High, where as the target is most likely reaching the 2300 area, and slightly beyond.
As mentioned in past reviews, the area of 2300-2350 is full of targets for high timeframe setups, and needs to be considered as a solid resistance since there expected to be a mass of Long covering at these levels. The Quarterly bullish pinbar of the 1st quarter 2016, the Weekly false breakdown also a pinbar, also forming an Engulfing pattern, and the engulfing pattern made four weeks ago – all these important signals point at the 2330 area as their targets. The 161.8% extension of the last two year retracement lies at the level of 2338.
S&P Futures, Daily, Weekly and Monthly charts (at the courtesy of prorealtime.com)
Disclaimer: Anyone who takes action by this article does it at his own risk and understanding, and the writer won’t have any liability for any damages caused by this action.