(click image to enlarge chart)
The targets at 1203 and 1207.75 have now been achieved!
Above 1207.75 (the April high) represents a capitulation zone for bears. There were, no doubt, numerous stops resting there from those who have been shorting against the powerful uptrend trying to guess at a turn before any sort of technical confirmation. Those resting bear stops have been the squeeze target all along, in my opinion.
ES 1207.75 represents a potential VST stop/sweep reversal line. It is a number that nearly everyone sees—and so it carries immense psychological significance. Some VST traders will be using 1207.75 as a new bull/bear line—with trading bias long above and short below. It is the first place in quite a while where a legitimate counter-trend trading setup exists, and so it bears (pun intended) watching.
I have also drawn in a channel top rail that should give some idea of the strength—if a breakout above 1207.75 is sustained. That channel is rather weak, but is the next upside VST target after 1207.75.
For today and in the very short term…it is all about 1207.75 and the ensuing order balance of buyers versus sellers above that line.
(VST entry signal at 1035 is now +170 points)
All trends remain up > 1172.75