Stock patterns hitting important price points

What is this target made of… steel? The next higher objective was met Thursday morning at ES 1311.00. It held several retests throughout the day. But all that time avoiding higher highs also avoided launching a downleg.

Pattern points… (Setups and technicals)

1311.00’s test was put into play by closing Wednesday above 1296.00. A second consecutive confirming close above 1296.00 is now irrelevant, since its 1311.00 target was met already. More important is that 1311.00’s intraday test held as resistance through the close.

1311.00 held as resistance despite being tested relatively early in the session. It was retested at least twice more throughout the day, during two more timing windows. No more trending was required, but any one of the tests was cleared either to extend higher, or to reverse down — and all attempts to reverse down were recovered.

Friday’s open must essentially gap to and through Wednesday’s 1303.50 close to avoid probing fresh highs, targeting 1313.75 and 1316.75. The rally could extend even higher by extending above 1319.00 through a relevant timing window.

Wednesday’s Expiration Indicator still allows for Friday morning weakness before marginalizing sellers Friday afternoon and Monday morning. By the same token, Friday morning strength could fulfill the signal simply by maintaining the morning’s gains.

What’s Next… (Outlook and opportunities)

I’ll send another reminder about this during the day, but don’t forget about the Saturday Strategy Session at 9:30am ET.

Look for at least one update overnight or ahead of the Morning Market Tour… My thoughts on the day’s econ calendar are linked here.

Rod David develops analytical techniques that are designed to efficiently identify targets and turning points for any liquid stock or market in any time frame. He primarily analyzes S&Ps, generating several round-turn candidates daily. Rod publishes "Trading Plan" and more each session at the blog http://IfThenSignals.com.

About the Author
Rod David

Rod David develops analytical techniques that are designed to efficiently identify targets and turning points for any liquid stock or market in any time frame. He primarily analyzes S&Ps, generating several round-turn candidates daily. Rod publishes "Trading Plan" and more each session at the blog http://IfThenSignals.com.

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