Stock indices showed congestion/consolidation yesterday, but no break of any important support on intraday. The ES 45 minute held perfectly at the focus of Gartley support, and the YM held the first 1.272 downside target extension. These were unable to break through intervening resistance on the way to new swing highs, but pre market this morning shows the likelihood that we'll open above that resistance and should be on track for new intraday and daily swing highs today. If that's the case, the tight range since last week's highs was indeed just a pause and consolidation and not the start of a more major correction. Seems obvious in hindsight, but what we can learn from this is how once again the 45 minute charts helped us to keep out of trouble longer term since support has held solidly. In other words, respecting the price pattern as shown by the Fibonacci support helped us to avoid committing to short side prematurely.

Since these pullbacks were rather shallow in comparison to recent daily corrective declines, the best nearby upside targets are visible on the 45 minute futures charts.

S&P Cash Daily:

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ES 45 Minute:

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Dow Cash Daily:

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YM 45 Minute:

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Nasdaq Cash Daily:

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NQ 45 Minute:

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Mark Braun – Market Geometry

www.mjbraun.net