SHORT-TERM (today 5 days out)
For Tuesday, the 42.92-43.10 region can absorb selling through August trade and above which a long-term buy signal remains in effect, expecting 49.36 within several weeks, higher into September trade. Upside today, 43.74 can contain initial strength, while pushing (especially opening) above 43.74 allows 44.75 intraday, able to contain session strength. Closing today above 44.75 indicates 46.01 within 1-2 days where the market can top out through the balance of the week, as well as representing the level to settle above for yielding the targeted 49.36 within 3-5 more days. Downside Tuesday, breaking/opening below 42.92 signals 42.49, while closing below 42.92 indicates 41.34 within several days. Ultimately, a weekly settlement below the 43.10 formation (pg 2) would be considered a failed long-term buy signal, essentially a valid sell signal into later year, 37.94 then expected within several weeks, 26.05 within 3-5 months.
MID (2-3 wks) & LONG TERM (2-3 ms )
The 43.10 formation (page 2) can absorb selling through the balance of the year, above which the next 5-8 months should yield 69.58-72.17. Nearterm, 49.36 can contain weekly buying pressures when tested, with a settlement above 49.36 indicating 55.41 within several weeks, able to contain strength through September activity. A settlement above 55.41 signals 61.51 within 3-5 more weeks, the targeted 69.58-72.17 region within 2-3 months, a narrowing range of long-term resistance likely to contain annual buying pressures when tested (page 2). Downside, a weekly settlement Friday below 43.10 would be considered a failed long-term buy signal, essentially a valid sell signal into later year, 37.94 then expected within several weeks, 33.91 by the end of September, last February’s 26.05 low attainable within 3-5 months.
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