Fibonacci Trading Levels To Watch on ES, YM and Dow Cash Today

• Print
• E-Mail

Yesterday we saw major resistance cleared on the ES and YM daily charts which should put us on track for an eventual target of 928.50 ES, and 8828 YM. But as you can see from the daily charts below it's not a clear path. We can expect pauses and pullbacks along the way.

The small green lines immediately above current price are interim target extensions projected from the prior high to low swing. This is a classic spot to expect a pause or pullback so we'll have to be on guard for that during the trading day today. The ES is also showing a minor timing high which reminds us of the significance of this price resistance.

If we do see a pullback, we'll look to the 45 minute charts for price to hold at bolded support levels.  I'd also prefer to see the 50 CCI (bold red line on the indicator panel) remain above +100 for the rally to resume smoothly.

Finally, there is one daily chart showing key resistance still intact. That's the Dow Cash chart shown below:

While there was an intraday penetration of the .786 resistance at 7991 yesterday, we'll need to see a close above this level to confirm the longer term upside potential. Should we see a significant pullback first, breaking 45 minute support levels, the strength of this rally is called into question. We'll need to focus on daily support in that case; taking intraday shorts and scaling into longer term short side positions if the daily support breaks as well.