"Monday's price action suggests there is more upside in the markets, as the DOW is pushed up from the Weekly 50% level, whilst the S&P closes above the Weekly 50% level.
And January's monthly highs (resistance) have now disappeared, so there is the potential for the trend to continue towards the Weekly highs, and then push higher towards the February highs."
S&P Weekly and Daily range.
Monday’s price action and the shift in the Monthly resistance levels in January have allowed the S&P to make higher highs,
This was helped with Monday's reversal from the Weekly lows and then the daily close above the Weekly 50% level @ 1280.
And with price now currently trading above the Weekly highs @ 1298, the trend bias is to continue towards the February highs, with upside targets being 1316, and as high as 1331.
However, as per Weekly report, my view for the S&P was to reverse down into the monthly 50% levels before the trend would continue upwards.
And at the start of the day, my resistance zones were 1287-1290 using levels in the daily range, with the expectation that price would move back down into 1274.75, and then continue to move down towards the February 50% level by the end of the week.
If the market was going to go higher using text book patterns, it would find support @ 1274.75 on Tuesday and then continue higher on Wednesday, forming a HOOK pattern, and then continue rising upwards from the Weekly 50% level.
But that changed once the market started trading above the daily channel high @ 1290, & the trend has simply followed the change in monthly dynamics, upwards, as resistance levels have now moved.
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