Submitted by Nic Lenoir of ICAP
Following Last night's after-hour break, we have reached and slightly bypassed our topside target of 1,063 on the future. The market seems to be consolidating here. There is on a 5 minute chart a H&S in formation but one would need a break of 1,062.25 to trigger it. However looking at the 5 minute RSI we have consolidated quite a bit, so we would observe this past level as a support in the very term and only recommend selling on a break.
If we do not break and extend, the Elliott wave 5 target of the move extension initiated yesterday morning is 1,075 on the nose, and the target for the move on 10/02 at the lows is 1,073. Given the previous highs are at 1,075.5, barring a break of 1,062 in the next few hours of trading it seems we are due for a retest.
Good luck trading,