E-Mini S&P-- The Bulls Remain in Directional Control For Another Day

In the early morning hours, just as the e-SPZ was bending over towards a retest of Wednesday's afternoon low at 1220.25, better than expected EZ and German PMI data hit the tape, which reversed the index to the upside in a frantic short-covering rally, which was enhanced later in the morning by Caterpillar Inc. (CAT) earnings.

And so, nearly 22 points higher than the overnight low, we find the e-SPZ heading into the U.S. opening bell.

Let's notice that the index has established three highs in and around 1941.50-1943.75 in the past 24 hours of trading, which if hurdled and sustained, will argue for upside continuation towards the next target of 1950/56, which my work argues should conclude the entire upleg off of last Thursday low at 1813.

In the absence of a sustained pop above the recent highs, the e-SPZ will have to press below 1928.50 to regain some downside traction, and to morph the developing Wed-Thurs pattern into a near-term top.