Yesterday S&P and Dow cash dailies showed a hold at the current daily upside targets. These should be interim targets as the larger swings are pointing to a good deal of additional upside.

S&P cash chart showing a more major target at 935:

And Dow cash showing 8932:

We know that we have to be on the lookout for pullbacks on the way though, particularly at interim target extensions like those met yesterday.

We can take this down to a closer view on the 45 minute charts for the corresponding emini contracts. So far nothing on these charts points to more than just another corrective decline after hitting targets.

ES 45 minute chart showing key support levels at 862, 857.75 and 852. There's also a timing low derived by multiplying the number of bars in prior corrective declines by specific Fibonacci ratios indicating that we should see a low put in during this morning's session.

On a rally we'll have to watch the key resistance levels at 877.50 to 881.00 (rounded down to reflect the ES tick increment) since if this needs a more complex correction before the rally can resume smoothly we'd expect to see price hold and fail within that resistance zone. If cleared instead, 891.50 is the next target.

On YM the key support levels are 8044 – 8054, 8028, 8010 and 7953 should the decline continue. There's a timing low there too, and if we actually take out yesterday's low there would be reason to expect a downside acceleration. On a rally the key resistance levels are 8190 to 8219, should this require a more complex correction. If we do see a resistance hold I'll provide additional charts to map the pattern we're likely to see in such a correction.

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