Yesterday the September index futures contracts made what should be interim upside targets within the parameters for intraday high timing cycles. Since there are outstanding targets to upside and prior resistance related to these targets has broken, we're favoring the idea that the rally will resume at least to the targets I'll identify below.

On the YM (eMini Dow contract), we're currently in a timing low cycle on the 45 minute chart. This means that the number of bars in prior corrective declines have been counted and multiplied by specific Fibonacci ratios. The 2 outstanding 45 minute bars this morning are where the maximum number of these timing ratios overlap, so if we are indeed seeing another corrective decline, we should see the rally resume during this morning's session. If we can see this time and price support hold, initial major upside target is 8871.

On the ES (eMini S&P contract), the time cycle factors also come into play during this morning's session. Initial major upside target is 954.25.

And on corresponding Nasdaq contract, we also have strong time and price support and an initial major upside target at 1517.75.

If price blows through this time and price support this morning, we can expect a rapid acceleration to the downside. We'll keep track of this and switch emphasis if needed, with longer term downside targets projected in a further update.

Happy Trading!