Mon, Feb 7

The last 50% extension long hit its target on Monday. The next setup is drawn from the lows at 1262.25 to the new highs at 1320. This suggests a pullback to 1291.50 before continuing higher to the -23.6% target of 1333.50. If the market does not pullback, but instead continues to tear higher, look to draw another extensions from 1299.5 highs to new highs. If the bulls do not buy their setup look for the next bearish setup.