A bullish week has passed achieving the target of the Weekly election’s week Spring bar at 20230. The open gap above mentioned here last week was closed right on last Monday, and taking out this reaction’s High (the High of Monday) was a good bullish signal for the rest of the week.
Currently the market is slightly above the 161.8% extension of the major correction of the last two years, at 20218.
The nearest important target is the 2-Year bullish Spring bar of years 2008-2009, that points right at 20285 as its target. The next one is at 20430, which is of the Weekly followthrough amplitude (See Weekly chart). These targets, and the fact that the market has reached an important extension level can yield some pressure down.
Targets above that are the last November Monthly Spring bar (the US elections) and the Semiannual bullish pinbar on sloping 8 EMA – both are pointing on the 20900-21000 level range.
For the longer term, the Quarterly spring printed for the last quarter is pointing at 22400, and the Yearly bullish pinbar on sloping 8 EMA, pointing at 24500 as target.
