Powerful Upside Setups In ES, SPY and IWM

Good Thursday Morning, MPTraders!  September 19, 2024-- Pre-Market Update: What a difference a few hours make, eh?  

In my final update last evening, I made the following comment: 

Now that the deed is done, and considering the markets expect another 50 to 75 basis points of cuts before year-end, I think the stock market just got an injection of kerosene that increases the likelihood of a melt-up that could start in the upcoming days, or perhaps at the beginning of October when the volatile September seasonal dissipates... 

Okay then, apparently, I was way off!  It appears that the Fed's kerosene injection ignited a potential melt-up just hours after yesterday's Fed festivities, once the obligatory post-decision price gyrations and whipsaws ran their course.

My attached suite of charts shows the powerful upside setups exhibited by ES, SPY, and IWM...

From the perspective of ES, my Big Picture Daily ES Chart shows the thrust above the July-September resistance line in the vicinity of 5715 that has followed-through to 5779 so far, which by the way, is less than a handful of points from establishing a new ATH above 5782.50, and in route to my next near-term optimal upside Target zone of 5800 to 5820. 

As long as any forthcoming acute weakness is contained above 5685 on a closing basis, my intermediate-term upside target zone is 6000 to 6100...

From a nearer-term perspective, my attached 4-Hour Chart shows today's upside thrust, as well as the 5655-5670 near-term support plateau that represents the initial zone from where EITHER new buying interest (buy-the-dip) OR stop-loss selling could emerge (an initial technical warning signal)... Last is 5774.25...

SPY-- Ahead of tomorrow's September Quadruple Witching Options and Futures Expiration, the "Magnetized Strike Prices" that will be within reach are 575 and 580 juxtaposed against 565 and 560. The SPY pattern has thrust to new ATH's this AM, heading for my next optimal near term Target Zone of 571 to 574, which if hurdled and sustained, will point to 575 in route to 580. Only a sharp downside reversal and breach of key nearest support from 563 down to 560 will compromise the near term set up... Last is 570.60...

Finally, IWM (Russell 2000 Small Cap ETF), yesterday's after-market strength into this AM's pre-market upside thrust recovered more than 100% of the post-FOMC reaction down-spike from 225 to 219. This AM's pre-market strength propelled IWM to a high of 226.70 as the price structure climbs to challenge the 7/31/24 high at 228.63, and if (when?) take out, then to 233-237. Only a plunge beneath 218 will argue that the upleg from the 9/11/24 pivot low at 204.21 is exhausted and has reversed. 

In theory, the IWM (Small Caps... sensitive small businesses) should derive the most significant benefit from the "larger-then-expected" 50 bps rate cut... Last is 225.17