Well I said yesterday morning that Monday's close on the daily middle band leaned bullish, and the bull flag channel on SPX has now broken up and retested. The first flag target is a retest of the 2116 high, and on a conviction break above that level the full flag target would then be in the 2163/4 area. SPX 60min chart:
If we are to see the 2160s then we'd very likely need a retrace first. The triangle on ES I posted yesterday morning has broken up with a target in the 2108 ES / 2110 SPX area. This thrust up from the triangle doesn't need to end there, but after this thrust ends the triangle thrust is very likely to be fully retraced back into the 2090 SPX area. I'd be surprised to see the thrust finish much over the 2116 high and it may well fail under it.
The other thing to consider is that this kind of triangle setup generally marks the end of a move, so the next obvious step after the triangle thrusts ends would be a retracement that would take out Monday's low on the way to targets lower down. I'll be watching for a pattern for the triangle thrust and will be calling it on twitter when it breaks down. ES 15min chart:
Just a reminder to close that Stan and I are doing a free to all Chart Chat on Sunday afternoon at theartofchart.net this week. If you are interested in TA, and/or if you are interested what are the likely next directions on SPX, NDX, RUT, DAX, USD, EURUSD, GBPUSD, Oil, NatGas, Gold, Silver, GDX, Bonds or Sugar are likely to be then I'd suggest attending. Places are limited so sign up sooner rather than later. You can sign up for that here.
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