Eyeing Consolidation Ahead of Rally to 4000+

Options data is neutral on review today. Internals are bullish. Price action is short-term bullish, medium-term bearish and long-term bullish. We are partially long the market now via two of our secondary systems. The Primary system is flat because we do not have an Odds Indicator buy signal, and this is unlikely to happen if we continue higher.

On price, we seem to be in consolidation after testing very close to the all time highs on the Emini S&P 500 (ES) late last week. This consolidation is likely to continue for some more time and once it is done, we can see a move toward 4000+ area. Support comes in at 3890 area and below this at 3850/45. As long as we hold that lower number, we should see higher levels toward 4000+ before the next sell signal triggers.

Grey zone resistance is at 3956-67 and then at 3993-4009. Support is at 3939-30, 3905-92, 3867-55, 3822-09 and then at 3780-68.

For Monday, daily pivot is at 3924.  Resistance R1 is at 3947.5 and R2 at 3962. Support S1 is at 3909.5 and S2 at 3886.5.

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Princely Mathew hosts The Smart Money premium service at ElliottWaveTrader.