SHORT-TERM (today and 5 days out)
For Friday, 18475 can contain session strength, below which 18335 remains an intraday target able to contain selling into later week, once tested 18675 attainable over this time. A settlement today below 18335 signals a test next week of long-term support at 18045, this formation able to contain selling through the balance of Q3 and above which the 19125 formation remains a 3-5 target. Upside Friday, pushing/opening above 18475 allows 18575, while closing above 18475 maintains a bullish posture into early next week, 18675 and considered a 2-3 day target able to contain strength through next Friday as well as a meaningful upside continuation point into early August activity.
MID (2-3 wks) and LONG TERM (2-3 mnths +)
The 18045 formation can contain selling through the balance of Q3, above which 19125 remains a 3-5 week target, 20085 attainable by the end of the year. Upside, 19125 can contain monthly buying pressures when tested, with a settlement above 19110 likely to yield the targeted 20085 within 5-8 weeks, able to contain buying well into 2017 (page 2). Downside, a settlement back below 18045 would be considered a failed longer-term buy signal, essentially a valid 2-3 week sell signal into the 17055 region where the market should bottom out through August. Closing below 17055 signals a good 2016 high, ultra-long-term support at 15845 then expected within 8- 12 weeks where the Dow can bottom out through 2017
