Decent-sized SOS day today, so SPX is unlikely to take off more than 20-30 points to the upside for the rest of this week. That fits my projections for a 4-5 day rally to 1960ish. However, I wouldn't get too cute with bullish positions. This is one warning sign among many that not all is right, and the 1920s really need to hold any drop.
My S2 System is actually in a bearish configuration and likely to remain so. The trend indicators are mostly bearish and the turn indicators are mostly neutral-to-bearish. If SPX rallies above 1960, the trend indicators will almost certainly be bullish but the turn indicators will likely be extremely bearish due to overbought short-term indicators, so SPX is not likely to take off until it can reach 1960+ and then consolidate around 1940-1960 for a couple days to keep momentum while relieving overbought levels. I am essentially watching the heavy price-volume areas around 1960 and the 1920s.
I am expecting an ABC or even a double zigzag up from 1904 to 1960ish into Thu/Fri. SPX could form a B wave down tomorrow in the 1920s. There is a gap to fill at 1931. There is hourly support at 1925-1930 not to mention the price-volume support. Or wave A could have further to run up first. If the B wave forms tomorrow, then SPX could either form a long choppy C wave (or double zigzag) into end of week or shoot up hard Wed/Thu above max OPEX pain near 1950 falling back to that level Thu/Fri. If SPX rallies tomorrow morning above 1945, it may not retest 1930 again until the dead cat bounce is over later in the week. Good fortune.
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