Our bullish view is also supported by ichimoku analysis, using both ichimoku wave and price theories.
The chart below shows the Ichimoku Cloud. I have marked the general N-wave structure via the points marked A, B, C and D.
The ichimoku price calculation for this type of move would be a V-type, in which V = B + (B - C). The result would be D, which would mean hitting a price target of about 17,250 before the market formed a larger correction.
In addition to this, the Tenkan line (the slim black line, which gauges the underlying momentum), is still above the kijun line (the slim red line). Also, the Kumo (the blue cloud) is quite thick and still rising. All these components -- from an ichimoku perspective -- suggest that the U.S. index is well supported for higher prices in the short and medium term. Closed-End Funds Offer Solace for 'Cruel, Cruel Summer' Fighting the Odds; Dimon's Health Revelation: Jim Cramer's Best Blogs Our trade ideas: Maintain a bullish bias while above 16,735 medium term. Look for short-term pullbacks toward the 17,000 and 16,845 support zones to get long. Add to current longs with 17,250 as the medium-term upside target. This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.