Review

What was expected:

a. Consolidation likely

b. If we see a pullback, the red zone would be the support

What actually happened:

1. 3 weeks of consolidation (light blue zone) where the price keeps getting back to the same starting level (the blue box)

2. Pullback happened at a higher level without touching the support area (red zone)

Outlook

So what else happened:

3. S&P chose to hold the up trendline (the blue up arrows) giving it a go for new high

4. News shock past 2 days sent S&P back down to the pocket (lime zone) and bounced

What it means is that the up trend is intact with more upside likely.

What we cannot tell is what will happen at the all time high, which is just some 10 points above last week high, if and when S&P finally challenging that.

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Following is a 30-min regular trading session (RTH) only chart of Emini S&P500 future contract.

By the end of the week of June 29, 2018. marked by the dark green up arrow, we have a very volatile week that swing back and forth almost 2% everyday.

Yet something very interesting happened – an inverse head and shoulders will be formed if the neckline at the top is cleared.

The red horizontal lines highlight the shoulders and the green horizontal lines highlight the head.

The best moment for jumping into this move is marked by the bright green arrow for which a confirmed 1-2-3 buy happened.

The target highlighted by the red box is expected to at least give us a pause using my trend line targeting method.

The blue box highlights the Inverse Head and Shoulders target for which consolidation and pullback is likely to follow.