Today's Support and Resistance levels:
S1: 127.85 R1: 128.96
S2: 127.13 R2: 129.75
S3: 126.50 R3: 130.31
Technical overview:
The picture still has not cleared, but we favor that an ending diagonal is developing. If that scenario is correct we should see one last rally above 131.12 before wave 5 and I terminate and a large correction in wave II sets in. At this point a break below 124.87 will weaken our call for one last rally higher, but only a break below 121.00 confirms that wave 5 already has topped and the large wave II rally is developing.
Trading recommendation:
We prefer to stay neutral for now and wait for a more clear signal.