The index charts have certainly provided us with great examples of Fibonacci price pattern and timing working together. The daily Gartley support patterns held within timing low parameters and gave us a pretty rapid answer as to whether this would lead to a rally. We were able to calculate this and project the probable lows once the interim swing high on July 1st was established; you can find these projections in my previous columns. Often these Fibonacci based time and price projections (when performed correctly) show the power to overcome more conventional price patterns, such as the potential head and shoulders pattern which was also in place on the index dailies.
While these support factors should have the strength to show us new daily swing highs, the first major challenge will be the 45 minute timing high on ES coming in from 11:30 – 12:15 Central time today. If we're rallying into that, we'll want to see little more than a pause or pullback without significant intraday support breaks in order to remain on track for those new daily highs.
S&P Cash Daily:
Dow Cash Daily:
45 Minute ES chart showing timing for a high for the middle of today's session as noted above too. This is only valid if we're rallying into it. For the rally to continue, it's essential that we see little more than a pause or minor pullback, essentially consolidation, during the focus of these timing projections. 11:30 – 12:15 Central time is key.
YM 45 minute chart:
NQ 45 minute chart:
Mark Braun – Market Geometry