SHORT-TERM (today 5 days out)
For Monday, both 46.74 and 48.22 can firmly contain intraday activity, beyond which the next notable level is expected intraday. Upside today, pushing/opening above 48.22 signals 49.07, able to contain session strength. A settlement today above 49.07 indicates 50.72 within 1-2 days, able to contain strength through the balance of the week and the level to settle above for pivoting the short-term dynamic back to positive, 54.18 then considered a 3-5 day target, 57.81 attainable by the end of next week. Downside Monday, breaking/opening below 46.74 indicates 46.07, able to contain weekly selling pressures, once tested 50.72 attainable within 3-5 days. A settlement today below 46.07 indicates 44.39 by midweek, able to contain selling through the balance of the year and above which a long-term buy signal remains in effect.
MID (2-3 wks) & LONG TERM (2-3 ms ) The 44.39 formation (page 2) can absorb selling through the balance of the year, above which a long-term buy signal remains in effect, 57.81 expected over the next 3-5 weeks, 62.33 within several months, the next 5-8 months likely to yield 69.66-73.47, a narrowing range of long-term resistance likely to contain annual buying pressures when tested (page 2). On the other hand, a weekly settlement below 44.39 would be considered a failed long-term buy signal, essentially a valid sell signal through summer trade, 36.12 then expected within several weeks, last February’s 26.05 low attainable within 3 -5 months.
