We had some uncomfortable Bears out there today. I had expected we test the 1292 resistance level, but I didn’t think it would be today. We are setting up for another major milestone in the last two weeks action. Just remember that there is an unfilled gap at 1323.00. Will we bust through? Lets take a look.
I have tomorrows pivot at 1282.75, that should form resistance since we have closed below that after hours today. The thing is that 1279.00, which was once resistance has now become support. The Bulls defended it all day today. The yellow highlighted area is going to be the battle ground tomorrow. Falling below the 1279.00 I’m looking for a target of the 1270 area, which is a 50% retracement of the last two day rally. If we do pierce the pivot and have follow through, I will be looking for an entry for a true break of the 1292 resistance level. There is an unspoken rule I have heard among traders, fade the first test and go with the second.
We will have to see..