Right now is a problematic time for charting ES, with the changeover from the H contract to the M contract. So I decided to pull the underlying S&P weekly chart, with a few extra doo-dads:
As you can see, the S&P has been on a three-week tear that has taken us convincingly above the January highs. Having broken above 1150, the next line of resistance is clearly the 1240 area that hearkened the sickening slide of October 2008. There's a long way to go from 1150 to 1240.
But - do you believe in Fibonacci circles? If so, check these out, centered on the March 9th lows. Each Fibonacci level has been followed shortly by a pullack. Only one level remains that has not seen a pullback, or should I say pullback yet - the 1.618. Interesting stuff.
Personally, I now refuse to go against the trend and am willing to just go with the flow until proven wrong. I think we'll break 1200 before long, but maybe not before another short sawtooth down first. Finally note that only seven times in the last 10 years has the Dow gone on a streak longer than seven days (where we're at now).
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