Just looking at things here tonight, some targets with an a-b-c drop from the noon pivot high could be either 1267, 1257, or 1250.
The gap-up last Friday was from 1251-1280, but the actual gap was from 1274-1280. We filled that gap with the drop to 1270 Monday.
That leaves us with support at 1270, and 1251. There is a rising support line that will also come into play around NDX 890, which should be around COMP 1251 at the current rate of the drop. That would support a P&S run from that level, or a higher low like 1252 or 1253, giving us a double bottom and an excuse to run up for options expiration.
stockcharts.com[h,a]daclyyay[d20020712,20020912][pb20!b50!b200!c13!c20!c50!i!d20,2!f][vc60][iUb14!La12,26,9!Lg!Li10,10!Lh5,5!Lp14,3,3!Ll14][J6471081,Y]&pref=G
We have gaps above to fill and Max Pain to attend to. If it was just one or the other, I'd be less confident of going up. However, with both and the re-trace target of 1314, I think there's a decent chance we'll be at 1314 COMP sometime next week.
By the way, I normally I like to see gaps filled with bodies of candles, not sticks. The fill of the gap at 1274-1280 this week was with a stick. That's not good enough. It will get filled with a body, and possibly tomorrow.
Daily charts are just turning down, but we could still get a 1-2 day ramp for expiration, IMO.
Here's the daily COMP showing converging support around 1251 and the falling resistance lines off the tops that are converging on the 1314 range for next week:
stockcharts.com[h,a]daclyyay[d20020712,20020912][pb20!b50!b200!c13!c20!c50!i!d20,2!f][vc60][iub14!la12,26,9!lg!li10,10!lh5,5!lp14,3,3!ll14][J6998700,Y]&listNum=1 |
