How High Can the Markets Go?
We frequently get asked
"How High Can the Markets Go?"
The true answer is no one really knows for sure but technical analysis can help determine potential targets.
Once a market reaches its target there's no telling what can happen then. The prudent thing as a trader is to allow it time to develop new structure.
Tesla TSLA is a recent example that comes to mind...
Above is an update to an ES chart that you may have seen me post before with higher timeframe levels. You can download the Think or Swim link for it below.
Technically speaking, the bulls have had a potential target up around 4877 since the March 2020 lows. But as we all should know price action rarely takes a direct path to any target and at any given time there could be multiple fibs in play in either direction that ultimately produces cycles. Cycles up and cycles down.
As you probably already know I’m not a “predictor” or a “caller of market tops/bottoms” across any chart.
But those who know me well know that I enjoy working on these “math problems.”
So here are some technical levels of interest as ES continues to ascend towards potential targets.
*Note - The higher levels do not represent levels I plan to short, rather they represent possible bull targets. Zoom out on the weekly/monthly to see the bigger picture.
For more insights into Trading All Time Highs you can watch our free recorded webinar at this link.
11/04/2021 Planning Chart - for S&P 500 /ES
https://tos.mx/u3OJvIu
copy/paste link in Think or Swim > Setup > Open Shared Item
Enjoy!
~ Tom Winterstein
11/05/2021 UPDATE - Direct Hit!
