The next optimal target zone for the current downleg in the e-mini S&P 500 is 1155/50. This represents the 50% retracement support plateau of the entire up-leg from the October 4 low at 1068 to the October 27 high at 1289.25.

Right now, we are getting anecdotal evidence only that the internal power of the decline is dissipating somewhat, which is an initial warning signal that a meaningful near-term low is approaching.

At the moment within a normal (rather than a panicked) market environment, the target zone is anywhere from 1160 to 1150.

 

Mike Paulenoff is a 26-year veteran of the financial markets and author of MPTrader.com.