On the cash dailies for S& P and Dow, we can see that the current pullback has held at all key support including 100 percent projections of prior declines as plotted from the latest swing high. Holding this sort of price symmetry means that as of now the rhythm of the uptrend is intact.
Also, on the cash S&P above you can see the bar counts at the bottom of the price area of the chart. Prior declines lasted 2 and 3 days since the March 6th low. Tuesday’s low was also put in during the 2nd bar from the current high. So if the time symmetry of the rally is going to maintain, we’d expect Tuesday’s low to hold.
Key resistance levels to watch on the dailies are 865 on S& P and 8105 on Dow. A break there will confirm that we’re heading to new swing highs and reinforcing support as well.
To zoom in, let’s take a look at the 45 minute ES and YM charts:
At the moment we’re currently in the middle of prior swings and hemmed in by .786 support and resistance on both of these. We’ll need a break of a .786 level on one side or the other to clear congestion. The resistance levels on these futures which correspond to those stated above for the cash dailies are 861.50 ES and 8049 YM. If those break, we should see new daily swing highs with the targets in green above. If the downside .786 levels break first, 831 on ES and 7786 on YM, we’re looking at a deeper downside correction which would set up as a Gartley support pattern. The support emphasis would be at the downside targets, 801 to 814 ES and 7561 – 7655 YM.