We've cleared the weekly index timing highs with little more than a pullback and choppy late summer trading. Last week we saw the lows hold near or at the key .786 support levels on the daily cash and futures charts, together with intraday price and time support. We're not totally in the clear yet as the current daily/weekly swing highs were indeed put in during key timing resistance. The most important thing to watch at the moment? The .786 resistance levels in bold, almost immediately above price, visible on the daily cash and futures charts. We'll need to clear these levels in order to imply new swing highs are in store on the dailies. As long as the current swing highs remain in place there's still a possibility of price failure; at least a more complex corrective move to downside. The most likely place for this to start would be those .786 levels, if we're going to see a deeper downside move in the near future. ES showing a 45 minute timing high in place for this morning. We'll need to see if that gives us a pause/pullback or a more dramatic downside move.

Please refer to earlier articles (link at the top of the page) for a discussion and weekly charts showing the timing high information.

S& P Cash Daily:

/

ES 45 Minute:

/

Dow Cash Daily:

/

YM 45 Minute:

/

Nasdaq Cash Daily:

/

NQ 45 Minute:

/