(click images to enlarge charts)
The Top Spotter signals have confirmed and so the initial target is the closest Primary Trend Line—in this case, the short-term primary trend line at 1104.50. There is also an open gap in the same area at 1104.25.
This morning, the initial line of VST (very short term) interest is simple support at 1117. If that line is crossed and held, then VST bulls will likely start selling–and we could get a quick move to 1104 to 1107 area.
The initial trendline break was at 1128, and that would be the first resistance target of a snapback rally. If that line is taken out to the upside, then a trip back up to the descending trendline is possible.
Early on, it looks like the top spotter has a chance to assert–and if it does, then confirmed support around 1104 – 1107 will be the first major test of the viability of the 1035 to 1144 leg.
ES 1124.75 is the stop sweep/reversal line that I have been talking about for some time—and VST bears have the ball under that line…and especially under 1120.75 which is the first countertrend sell signal on Stops and Targets for the ST (short-term) and IT (intermediate term) timeframes.
The numbers to watch in the early going (in my opinion) are 1128 to the upside and 1117 to the downside.
All primary trends remain up > 1104.50, but the confirmed spotter signal urges extreme caution on the long side–and opens the door for the bears if they can take out and hold the next objective, which is 1117.