The current rally on the S&P 500 may be targeting higher prices yet. Why do I say that? Because that’s what my Fibonacci method is telling me. Let’s look at some charts.
Below is a longer term, daily chart of the S&P 500 E-Mini contract (ES) I’ve used for acquiring longer term targets starting back in 2010. All the upside targets have been hit and closed except for the current one at 2123.50, which I fully expect to be hit.
S&P 500 E-Mini – 4 year, Daily chart
Now a tighter view of the same chart with a few support levels to be aware of.
S&P 500 E-Mini – 1 year, Daily chart
As you can see in the above chart:
- Support levels are 2034.50 and 2020.25
- 2034.50 support has been tested and held
- A “W” pattern is forming confirming my belief the 2123.50 target will be hit.
Thanks for reading and always use a stop !
This post originally appeared on See It Market