The U.S. stock indices continue to explore unchartered territory with seemingly each new day ushering in new all-time highs in the e-mini S&P 500 (CME:ESM14) market. Yesterday being one of the first “red” days in a while provides traders an opportunity to establish some upside targets following the relatively insignificant pullback.
Specifically, 1951.75 and 1954.75 have now become relevant resistance, or perhaps a better descriptive label would be upside profit objective. As illustrated time and time again, this market doesn’t seem to be phased by resistance and current price action is comparable to the rising tides of the sea: once a new high level has been made and the market (or sea) briefly pulls back, the previous high water mark is simply a goal to achieve on the next wave in.
Naturally, directional bias across all time frames is bullish and traders should continue to look for valid opportunities on the long side of this market. Near-term potential support can be seen at 1938.25, a level which could offer bullish traders a valid entry area for a long position provided price can pull back to this level.
Jun. ‘14 E-mini S&P 500 30-minute Bar Chart (e-Signal)