Corey Rosenbloom: Despite the lengthy uptrend, the shorter-term S&P 500 (INDEXSP:.INX) has devolved into a sideways trading range with clear boundaries.
Let’s take a look at these boundaries, chart the current rally, and plan the near-term future for the market.
We’re using the @ES futures chart to highlight the recent trading range and the visual divergences that have taken place into the support and resistance range boundaries as drawn.
In simplest terms, the key focal point for the @ES futures include the 2,000 range high and the recent – today’s inflection – low into 1,970.
Price pushed beyond the 2,000 boundary to form a Bull Trap and we see the expected reversal/reaction back down to the lower support level (1,970).
At this point, we’re playing a bounce up off the 1,970 support target and are looking initially for the 1,985 midpoint, and even higher than that (targeting 2,000) should this bounce continue to fill-out the range as drawn.