(Click On Chart To Enlarge)
This morning, the market has been digesting yesterday's huge gain. The SSO had a breakout of a Symmetrical Triangle (pattern in yellow) that put a target of 30.98 IN PLAY.
It rallied to 30.75 then pulled back to 29.61, which was the last low of the Symmetrical Triangle (at Yellow #4, and held it exactly. From there, the SSO put in an Ascending Triangle (pattern in red), which also was looking like the Right Shoulder of a possible Head & Shoulders Top. It broke out the upside, though, putting a target of 30.49 IN PLAY. The 11:59AM high was 30.47.
Support:
1. 30.05 - 30.06 - The top of the Ascending Triangle
2. 29.61 - 29.61 - The "neckline"
3. 29.43 - The morning low
If the SSO can take out the morning high of 30.75, that would put a target of 31.89 IN PLAY. (30.75-29.61 = 1.14 points + breakout above 30.75 = Target: 31.89). The gap from the October 21 failed Ascending Triangle at SPX 985 Resistance was SSO 31.70, very near the 31.89.
Targets against the dominant trend are less likely to get MADE. Use stops accordingly.
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