Since the indices continued to rally into the close of last week, we now have a clear indication that the Fibonacci Time Cycles for a high which were in effect during the week only brought a pause and pullback. This implies that there's a great deal of upside potential in these markets. They are currently holding at initial daily target levels, serving as resistance. Prior resistance point towards higher targets, but we have to be prepared for the possibility of pullbacks whenever price encounters a Fibonacci Extension level that's strong enough to show up on the daily charts.
On pullbacks, we'll look for the daily support to hold for new swing highs. The major target on S& P is at 1019; we'll watch for the possibility of more congestion or a larger pullback at that point.
The initial major Dow target is 9800, but there's also significant resistance at 8932-8972. While I expect price to clear that zone, there may be something of a struggle there.
Nasdaq is pointing to 1594 initial major target:
As always we'll monitor the 45 minute futures charts in my chat room should price catch and hold at closer support from the smaller swings represented on that timeframe. As I've mentioned before, the 45 minute charts have been an excellent roadmap throughout the entire course of this rally since the March lows. Here's a closeup of the current support levels on the ES contract. The more important levels are in bold: