I hope everyone had a great weekend and enjoyed time with your mother for "Mothers Day". I don't expect much action this week in the market, at least not early on. It's pretty clear the futures want to fill that gap up around 2755 but with charts being so overbought short term there's likely to be several attempts made to reach it. Today looks more likely to pullback some to a lower support level, which for today might only be the rising light pink (red?) trendline that just a few points below where we are currently at right now. The horizontal chop zone is a hair below it around 2720 or so, which would be a pierce of that trendline and another likely target today.
But we might need two days of a slight pullback to consolidate before moving higher again, and the lower target would be the 2700 level... which is where the blue falling trendline is pointing to today (but will be a little lower tomorrow). My guess is that we'll see some kind of ABC move down into that area and then back up later in the week to fill that 2755 gap. Then the tricky moves should start as everyone see's the gap and will short it when it gets filled. So I expect something tricky around that period. Maybe a strong pierce through it to 2770 area, or possibly just hit it once, then pullback a day and go back up and hit it again? Hard too know for sure but we'll guess at it again when we get closer to that period. Not much more I can think of to add for this mornings' update so I'll leave it at that.
