Yesterday, the Emini S&P 500 closed at 4233.5 in a tight range day digesting the past couple days’ move. There were very shallow dips as every little dip seems to be getting bought up as we head into month end.
Overnight, the ES made higher lows and higher highs, so the slow grind up continues towards the approximate 4300 all-time high target. Today has opened as a small +20 points, or +0.5%, gap up. Let's see if price accelerates more after the RTH open to get out of the 4250-4258 resistance zone.
Looking at our charts, the market has deviated from our red-line projection. It is now ready for immediate acceleration/breakout into the 4300 area given the current backtest into 4250-4258. At this point, given the structure and breakout attempt, immediate supports have moved up to 4238/4225. Any dip is buyable when price remains above immediate levels.
Otherwise, if a bigger dip occurs, it opens risk to 4200/4185/4178.
The Nasdaq 100 remains the strongest index. Its outperformance needs to be watched closely. It is holding everything together at the moment alongside with most of our "best in breed stock picks" that continue to outperform the market. Manage risk properly if you are operating an uber bullish tech portfolio like us. Racket up stops dependent on your timeframes and enjoy the lazy river approach. Easy money for the time being, given Nasdaq/tech riding above the daily 8+20EMA strong bull trends.
If and when tech turns south, it could get real ugly for ES and RTY – more volatility picks up/mood swings. Otherwise, expect more of the same pattern – a grind-up and into year end towards 15,000 target.
ES JUNE 24: REVIEW
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