Hello Everyone,
Quick Note: On Friday the SPX gapped above it's short term trendline trended higher into the afternoon when it formed a bull flag. Then on Monday the SPX gapped up to test it's longer term trendline (from April) as well at the top of its recent channel that we have been showing on the SPX 30 minute chart. It stalled out upon the first test with the oscillators quite overbought and the began a quick sharp pullback to retest Friday's gap. This aligned with a 50% Fib retracement which is a normal wave 2/b retracement. Then today, the SPX gapped up again (commensurate with wave 3 type action) and quick took out resistance around its .618 Fib (3870s) and more importantly broke above yesterday's highs and longer term downtrend line from April with terrific breadth (all 10 sectors closed higher). Today was a nice trend day with the SPX moving up over 100 points (3937) back above it's 50 day MA (first time in 3 months) and closing near the prior highs back in late June (3945). In after hours ES, moved up to test the prior highs from June around 3950 following the NFLX upside move which was the first target area followed by the June 10th large downside gap (3970-4020). Obviously, this puts the bulls in control with the next upside target around the 4000 area. Overnight supports 3920 and 3900.
Please take a moment to look at the trade ideas.
