The markets began the day quite volatile but ultimately found further downside below 2020 to fill one of the gaps below at 1924.24. However, as you can see that was the place where buyers stepped back in, creating a small inverse H&S and then a cup/handle as we saw both targets acquired today. It really was a great day for the bulls as they were able to protect the double bottom cup/handle we talked about in the weekend chart show and close the market back above 2020.
Where does this leave us? Well, into the close we triggered what appears to be an inverse H&S. I would like to see some follow through above that 2024 swing, but the target would be 2043.24.
We can see that this lines up pretty nicely with the 61.8 Fib of this swing move. (i.e Thursday’s high and today’s low)
The Bottom Line – It appears the market wants to bounce into OP EX week as has been the pattern all year. After today’s gap fill the market has triggered it’s 3rd bullish pattern targeting 2043.24, so we must give it the benefit of the doubt until it is killed off. My expectation is that that target will likely be acquired tomorrow. As long as we are above 2018.25 we can be long into 2043.24.