Further to my more indepth road map on the NQ futures contract, it makes sense to see how the other major indexes are doing. Due to their rough similarity, I am assuming for simplistic case that the pattern for the ES and RUT are also ABC’s even though I am not 100% totally convinced they are because of the 1.618x extension target levels hit by the December lows.
This analysis is more about the bounce and where we go from here …
S&P 500 Index Futures Contract (ES) – 240 Minute Chart
So it appears that we are in the bigger SLOT resistance zone drawn off of the top of the October highs down to the December lows. It also looks like we are near the completion of a 3-wave price structure for the bounce off of those Dec lows.
Russell 2000 Index Futures Contract (RUT) – 240 Minute Chart
The RUT is in the SLOT drawn off of the November bounce highs down to the Dec lows … we are also nearing the downtrend resistance line drawn off of the prior two highs.
Bottom Line – it looks like it makes sense that we are at or very near a logical resistance spot for the major market indexes.
Cheers … Leaf_West