Monday's bottom is beginning to reveal its importance within the grand scheme of price structure in the markets. Each day of successive strength, moving further away from the lows and the critical support areas that created the lows, intensifies the degree to which those lows become a pillar for strength.
While it's still important to observe consistent strength into the end of this week, the market is strongly suggesting that upside momentum has reasserted itself with a definitive target in mind for where the markets are headed over the short-term.
While it was the NDX that created the hook for the markets for Monday's low, the S&P 500 should take over from here for upside resistance and what is a fairly reliable target on the upside.
With that said, the target for this move during June is 2910 for the S&P 500. This will be the first area of substantial resistance experienced by the markets following this week's low.
How the market deals with that level will provide the next slices of valuable data related to where the markets are headed. Whether in the direction of new all-time highs or a retest of the recent lows during summer.
Stay tuned.
