SHORT-TERM (today and 5 days out)
For Wednesday, 2141.50 can contain session strength, below which 2116.50 (2123.53 index) remains an intraday target able to contain selling through the balance of the year. Holding above 2116.50 should yield 2187.00 by the end of next week, 2233.25 within several weeks, higher trade expected through the balance of the year. On the other hand, breaking 2116.50 allows 2095.75 intraday, while closing today below 2116.50 signals 2074.50 by Friday’s close, 2061.25 by the end of next week, 1975.00 attainable over the following 3- 5 weeks. Upside today, pushing/opening above 2141.50 signals 2153.25, likely to contain initial strength, beyond which 2161.25 becomes an intraday target able to contain session strength. A settlement today above 2161.25 indicates a good weekly low, 2187.00 then expected by Friday’s close where the market can top out through next week.
NEAR (2-3 wks) and LONG TERM (2-3 MO+)
The 2116.50 (2123.53 index – page 2) level can absorb selling through the balance of the year and above which a secondary long-term buy signal remains in effect, expecting 2233.25 within 3-5 weeks, 2389.50 within 5-8 months. On the other hand, a daily settlement below 2116.50 indicates a good 2016 high, 2061.25 then considered a 1-2 week target, 1975.00 within 3-5 weeks where the market should bottom out through November – possibly the balance of the year. Nonetheless, a settlement below 2116.50 would represent significant buy-signal-failure, allowing bearish continuation over the next 3-5 months into the 1832.25 region – this potential downside target essentially confirmed following violation of 1975.00.
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