Two weeks ago we discussed two different path for S&P to climb over 5,000.
Last week bears failed again to follow the short term bearish scenario.
Bulls may keep pushing S&P higher along the “straightforward path” scenario posted on Jan 21, 2024.
This is how that chart looks like now:
You can open it in TradingView.
ES-mini has two similar bullish paths:
(i) a conservative bullish scenario:
A conservative bullish scenario argues that ES should complete the wave ( iii ) up at 5,050 – 5,045 with potential extension to 5,106 – 5,116.
(ii) an ultra bullish scenario:
Under the UBER bullish super aggressive scenario bulls can push ES-mini to 5,125 without any pullback to complete a micro wave iii of -c- of -v- of ( c ) of ( iii ) up.
The best trading setup of the January 2024 was to buy a failed attempt of bears to break under the red daily resistance:
In an up trending market price normally stays over the daily resistance 90% of the time.
The key level of support for ES-mini for Sunday – Monday is 4,963.
The key level of support for SPX for Monday is 4,906.
Bulls have to defend that level to keep the trend up. Failed break under that level should be considered a long setup.