Current SPX Position: Short at 1606.17
Next Action: Stop out and go long at 1622.57
System Score: 1.5=Bearish=Trend Score + Turn Score=3-1.5
Proposed New Score: 30%=Bearish=Trend Score + Turn Score=12+18
The Score dropped to bearish but SPX is not far below the fulcrum point that it needs to break to become bullish. The System broke 4hr support today leading to a short entry, but it will switch to a long position if SPX rallies to 1622.57 which isn't far above. I forgot about the smaller half-day of trading today, and SPX consolidated in an even more narrow range than I expected this week. Obviously, the Friday jobs number will likely play a role in the next market direction. I am not an EW guru, but SPX looks like it completed a 5-wave LDT from 1627 to 1605 while Dow looks like 5 non-overlapping waves. So, the late-morning rally may have been part or all of a wave 2/B with little-to-no more upside before a down move probably equaling or exceeding the first which was 22pts. Currently, 1619-22=1597 and 1619-(22*1.62Fib)=1583. The latter target would fit my blue 2-week triangle scenario charted last weekend. If SPX breaks above 4hr resistance near 1623, the odds are at least 50/50 that an uptrend to new highs is underway with one more resistance area in the mid-1630s. Good fortune.
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