c505218304b50c59c3659f6dda43bae7-links-0–>On Monday’s post, we exited our bullish position and are currently watching the market. Based on the overnight action, we determined this morning that there would be further upside – potentially up towards 2110.
Indeed we dipped below 2090 and then rallied over 2100ES for the first time, reaching as high as 2105 and then it dropped towards 2096 at the close.
The main question is whether we will hit resistance or whether we will blow through that resistance as we basically have for every resistance line since the 1800 bottom. The last hour of trading could potentially be a reaction from resistance, but I’m not counting enough waves to complete the uptrend yet.
We were looking for a potential 5th wave — but it looks like 2087 was not the end of the 5th wave. Instead, overnight, we got a push up to 2098 — and then we got an A-B-C corrective 4th wave that held support at the 2086 level, that means the uptrend continues.
In the last hour of trading, we dropped 9ES points from 2105 to 2096. If this area holds, we could do one more high in a 5th wave up.
It’s also possible that that was a local top at 2105. A break below 2090 would confirm that but leaning towards 1 more high.
We hit new highs breaking 2100 on the S&P500 daily chart in the futures chart.