Market Testing Micro Support
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The market opened higher today but drifted lower into the afternoon session. While we did register a higher high, which could represent a potentially complete pattern, price action remains firmly above even the uppermost support levels. As such, we do not yet have a signal of a local top.
As long as support holds, further direct upside extensions remain in play. However, a break of support would provide an early indication that a local top may be in place. To confirm a more meaningful top, lower support levels would still need to be taken out. At this point, the market remains well above those key levels.
On the ES chart, upper micro support currently comes in at the 6519 level. A break below this would serve as the first early indication of a local top. From there, we would need to see follow-through with a break under 6500, followed by 6473, to strengthen the case for a top. Below that, 6425 is the next key pivot I am watching. If that level fails, then the lower support/pivot zone comes in at 6239–6161.
If the market is able to hold support, immediate overhead targets/resistance come in at the 6590–6612 zone, with the larger SPX target/resistance overhead still residing in the 6643–6914 zone.
