Current SPX Position: Long at 1622
Next Action: Stop and go short at 1623.95
System Score: 6=Bullish=Trend Score + Turn Score=7-1
Proposed New Score: 44%=Neutral=Trend Score + Turn Score=28+16
The Score is barely bullish, but it will definitely turn bearish, not just neutral, below 1632. The bears are now setup well into Thursday morning, but the market seems likely to consolidate 1624-1654 into the Wednesday afternoon FOMC announcement. Once again, bears need to seize this opportunity to break things down or else face new highs, and this time they need to break the uptrend line and 50dSMA (currently at 1615ish). If SPX can close an hour above 1644.82, the stop-and-go-short level will be raised above 1630. One possibility is an EDT C wave ending at 1646-1653 Tuesday. In any case, the System is in a profitable long position while ready to reverse short based on the technicals. All the evidence has pointed me in the direction of a larger downtrend, but the bears are running out of price and time to make a move and FOMC/OPEX week will have a lot to do with the outcome. Good fortune.
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