After two Weekly inside bars, there came the next thrust up throughout the passing week, to reach the target of the 2 Year (!) pinbar of the years 2008-2009, at 2300. The long tailed Spring Daily pinbar of post elections at November 9th points also at these levels, 2305 as a target, very close (and practically it has been reached). The level of 2305 is also the target for the current Daily bullish setup since the Daily swing High has been taken out.
In order to join the bullish wave on the Daily timeframe, it is better to wait for a false thrust down that gets support on the Daily 8 EMA (short term sentiment line), best if it ends as a bullish pinbar on the sloping 8 EMA. If that kind of bar is printed, check its amplitude in order to reach the target of 2305. In that case, taking out its High is the signal to go Long.
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, Monthly and 2Year 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.