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There is a lot of Bull in the market. My first chart - the Weekly - gives the Big Picture so we can see what our overarching market opinion needs to be. Look at all the Bullishness on this chart: 1. ES above the 15EMA, 50MA and 200MA, 2. all but the 200MA have positive slopes and the 200MA is flattening, 3.ES is in W3 of W5, 4. ES consolidated below the 61.8% retracement level and began peeking above it on Friday (still in area of resistance though!), and 5. typical targets above the current high are indicated on chart - including MOB. I've included a range for the Weekly resistance levels (wide translucent red line) based on the long-term correction to indicate that these resistance levels are operative over a range of more than a few ticks. My ultimate target has to be the 1350'ish level - with the 78.6% retracement level (1389.65) being the extreme target. I've also included a wide translucent green line next to the green arrow to remind us that ES needs room to move during its ascent. This scenario can stand a Weekly red candle and still be on its way to the target.
The next chart zooms in to the 30 minute time-frame and examines more closely where we are in this last rally - on the Weekly chart, the rally beginning at W2 of W5. This chart shows us that we are in a W3 of an impulsive move - or possibly a W5 of that move. Either way, we can expect ES to correct at some point during this climb, but for now my trading strategy has to be buy-the-dip until the market tells us otherwise. I've included the 61.8% retracement level from the Weekly chart above on this chart as a wide red translucent line to remind us that ES is at resistance in the bigger picture. The little red arrows remind us of levels where we might expect a correction. Be on your trading toes! And good luck next week!
