Futures are off moderately after weaker than expected housing data and in anticipation of next week’s Jackson Hole Fedspeak.

ES reached our next upside target a little ahead of schedule, and is now backtesting the purple TL from recent lows.

continued for members…

ES briefly broke out of the rising white channel and just as briefly broke back into the much larger channel from which it broke down last week. Our thesis has been that it would continue to climb the underside of this channel, arriving at the IH&S target in late October.  If it were to climb back into the larger white channel, this would obviously affect at least the timing of that target.

SPX’s chart suggests its IH&S target would be reached in mid-Sept, also a backtest of its own rising white channel.

continuing…