The market gaped down on Monday last week dropping more than 20 points from the previous weekly close to the daily low. The next day it made a lower low, but after consolidating for the next 2 days it rallied strongly on Friday and is now challenging the ATHs.
As a result, the weekly cycles are still above their resistance levels, ES more clearly while YM just a bit. No attempted break-outs just yet, but market cannot go much higher from these levels without one. So the resistance levels are important to be considered, either for an attempted break-out or if the market goes back below them.
On the daily cycles nothing much happened. YM triggered a resistance level and the market retreated from there. Despite the bounce it is now still below it, so that resistance is not broken yet. ES whipsawed its resistance and is now back above it. This adds weight to the picture painted by the weekly cycles, meaning the market cannot push higher here without attempting a break-out above resistances which, if it happens, would mean another strong up move is likely.
The 288 and 480min cycles You need to be authorized or upgrade to see this content. Please go to http://mcm-ct.com/membership-signup-dev-2/ to sign up.