Thursday Prep

The bullish longer time frame continues to dominate, though the momentum and volatility has dropped off considerably. Yesterday's balanced narrow range day left value above Tuesday's breakout point. 

The 2185.00 all time high (back-adjusted) is the next obvious target for the RTH session having tagged it during the overnight trade on Tuesday. There is no hard resistance above 2185.00, just measured targets.

Value has been building steadily higher over the past week and I would expect strong long term support to step in around the 2147-49 area if there's a break lower. There are also single prints open from Nov 9th between 2142-45.50 which could see responsive buying if we see stops run through the 47-49 zone. If that fails then the long term bullish bias has changed and my next target would be 2125.50, which was the Nov 9th RTH buying tail support level.

The large jump in bond yields and strength of the US dollar since the election has yet to impact stocks, but is a source of cognitive dissonance for the long term bullish stock scenario.

CPI and Yellen's testimony are today's major news items due.

Initial support I have today at 2170.50-72.00, then 65.50-67.50 and initial resistance at 76.50-77.50. Holding above there puts the all time high as next target and potential continuation.