Another narrow range bar, this time an inside bar, printed throughout the passing week, at the target area (2248) of the bullish Quarterly pinbar on sloping 8 EMA mentioned in the previous reviews, as well as the 138.2% extension to the last major bearish wave since April 2015. All the last 7 Daily bars are inner to the last major bearish bar of December 14th.
The bullish momentum on the Weekly timeframe continues, as the bars are stick to the upper Bollinger band.
The market might give a bullish opportunity on the Daily timeframe by taking out the Highs of last Thursday – a bullish pinbar on sloping 8 EMA, and last Friday, – both at 2261. The target is at 2270, back up to the upper part of the current Daily range.
Back into the larger picture, we are almost at the target of the huge false breakdown occurred throughout the years 2008 and 2009, pointing at 2300 as the target. This is also the Daily post election day’s pinbar target. Slightly (in these terms) above it is the level of 2330 which is pointed by couple of important signals. 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 by two weeks ago and has already gotten the thrust up – all these important signals point at the 2330 area as their targets. All these targets should most likely create a mass of Long covering, and we should see some considerable retracement there. The 161.8% extension of the last two year retracement lies at the level of 2338.
12 points higher, at 2350, is the target of the Quarterly bullish follow through, and 2400 is the target for the bullish Monthly pinbar on last November that has already got a thrust up above its High at the current month. Again, consider the targets at 2330 as an important resistance.
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.
