A couple days ago i put out a post predicting that we would break to the upside. Despite all the bears calling for the market to break down we ended up breaking to the upside as i predicted. The previous trade i posted is still working away with targets around 9800 and my stops have been moved to the 8550 area to guarantee that i lock in some profits .
On the lower time frame you can see whats going on in my 30 minute chart. The market started to make a market structure top on the 30 minute and hourly chart. After poking around and breaking a few stops the market decided not to breakdown. Instead it reversed and put in a market structure bottom on the 30 minute as well as a bullish divergence. Seeing the market given an opportunity to breakdown and instead reverse and print bullish market structure is very bullish on the short term. Off of the market structure bottom on the 30 minutes chart i drew a small AB=CD pattern on the lower time frame which points to a target in the 9600 range. Looking back at my daily chart i notice there is alot of confluence in the 9500 to 9800 area.
Plenty of people will be taking profits at the 38.2 fib, they will be taking profits at our 4 hour AB=CD target and our 30 minute AB=CD objects. They will also be shorting the red line which represents previous market structure tops. This being said in the short term i expect a stab up into 9500 to 9800 areas before we enter a correction. Once that correction is complete we can start thinking about the moon but until then stay focused and make sure you can come back to play the game again another day !!!
