The breadth charts remain the same as yesterday with a +12 score. The 40 DMA % index is still lagging and waiting to confirm that we are in an up move. Thursday’s price action was very strong and gave us the first day of a thrust from the bottom. We would like to have a follow through day today to give us more confidence that we are heading for higher price targets.
A reverse head and shoulders has setup on the ES 30 minute chart giving us and upside target of 1139. The shoulder sits at 1088 so that becomes a resistance point to monitor.
The Zwieg breadth indicator is setup again to possibly produce a new thrust. Friday will be day number two on the climb to the 61.5 reading.
SPX:
1090-1091 area is support now and the bulls need to hold if they want to convince others to jump in with them. Upside we have resistance at 1102.69 and then 1108. The next major target on the upside is 1119.
We would like a second trend day or just a green NR7 to confirm the upside trajectory. There is not a lot of support in this 1102 to 1901 area except for what we built yesterday.
Bulls Plan: break above 1108 sometime today and close above 1103.
Bears Plan: Fail around 1109 and retrace down to 1091. A close below 1091 would be extra credit.
My Best guess.. The upside continues but more choppy than yesterday. We close near the highs of the day around 1109.
