The chart shown is experimental. It is continuous, meaning that it blends highs and lows from different contract months to produce a 4257.50 rally target. The A, B and C coordinates are related, but only as cousins, not siblings. Will the ‘D’ target still work? The ‘p’ midpoint certainly did, precisely containing the C-D rally leg, albeit not for long. We’ve been using the 4233.50 target of the same pattern, except derived ‘organically’ from the March contract. Last week’s short squeeze got within 0.5% of it, but my gut feeling is that the futures have consolidated enough already to blow past 4233.50 on the next upthrust. That target can be used nevertheless to get short with a tightly compressed rABC pattern, but I’m going to suggest using 4257.50 as well, if and when the futures get there. Incidentally, it is ‘backstopped’ by a ‘voodoo resistance’ at 4252 that could also be used to anchor an rABC short.
ESH23 – March E-Mini S&Ps (Last:4146.00)