S&P500 daily update

Market stabilises just above the Buy Signal line.

Today is also a pulse high, with another one next week, and another arm of the large(r) T structure projecting another peak from the sequence of April and May highs also next week. I am therefore expecting choppy attempts at the declining resistance as the market adjusts to the higher prices of the new range and decides whether there is any requirement for further selling at this time.

The T volume oscillator turns neutral. This area is a good place for a bounce and should that occur we might expect a recover attempt back at the highs. Failure to bounce here would set up a potential move down to the breakout area.

Be prepared for whatever is coming next, and trade with confidence:

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Disclaimer: This is the diary of a personal trading system, its methodology and the signals that it is producing. You are welcome to follow along but please understand that the information presented here is for educational purposes only. No recommendations are being made to buy, or sell stocks, options or futures contracts. Please consult your own financial advisor before making any investment decisions.

The festive season starts with St Nicholas and the market appears to have found strong declining resistance to price above the recent outsized move. Presumably some adjustment and consolidation is required to absorb the price discovery, perhaps prior to Santa's annual visit with his reindeer.

Be prepared for whatever is coming next, and trade with confidence:

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Disclaimer: This is the diary of a personal trading system, its methodology and the signals that it is producing. You are welcome to follow along but please understand that the information presented here is for educational purposes only. No recommendations are being made to buy, or sell stocks, options or futures contracts. Please consult your own financial advisor before making any investment decisions.

 

Many persons of both sexes, unmindful of their own salvation and straying from the Catholic Faith, have abandoned themselves to devils […] whereby they outrage the Divine Majesty and are a cause of scandal and danger to very many […] the abominations and enormities in question remain unpunished not without open danger to the souls of many and peril of eternal damnation.

Summis desiderantes affectibus, a papal bull issued by Pope Innocent VIII, on 5 December, 1484, gave explicit papal approval for the torture of women accused of witchcraft.

(Thankfully we don't live in that World anymore)

–

And so the market pops up dramatically to a new all time high which is found to be unsustainable and initiates a sell sequence into the close. That looks and feels just like an echo high and so I'm assuming that the echo high scheduled for today came in a day early. It could also be a continuation of the selling initiated at the arm of the large T structure marked in blue projecting a peak for 01 December.

The market is of course super-overextended relative to its averages and this means that it is susceptible to some strong selling. And so, although the Buy signal remains in play we should be prepared for more volatile days ahead whilst the market comes to terms with its new extended upper range.

Momentum still looks very strong, as does the breadth, whilst some indications are more bearish. Mixed signals means more volatility.

Be prepared for whatever is coming next, and trade with confidence:

To receive detailed daily analysis, guidance and the updated daily Buy / Sell trigger levels being generated by the Trading the Line system before the market opens, and intraday alerts when appropriate, please become a Member and Sign up for Alerts & Observations – includes access to Members Area and the Explanatory Notes for all of the concepts discussed.

Disclaimer: This is the diary of a personal trading system, its methodology and the signals that it is producing. You are welcome to follow along but please understand that the information presented here is for educational purposes only. No recommendations are being made to buy, or sell stocks, options or futures contracts. Please consult your own financial advisor before making any investment decisions.

 

A wild, wild day at the races, as the market takes a plunge back down to the breakout area and returns to settle back well above the Buy signal line.

Last week showed us that there is turbulence in the marketplace and that price is starting to press some buttons – sell programs / hedging to lock in significant profits / targets acheived for the year, those kind of things.

If the volatility continues, and I think that it will, we should have some more extraordinary opportunities in December for profit-taking. As we can see the range has expanded considerably and we can expect the market to bounce around within this vast new range, initially marked by the recent high and low at 2605-2657 but perhaps opening out to 2575 – 2700 in the weeks to come.

The fun and games continue today with the Futures market playing catch me if you can – and trading significantly higher in pre-market.

Be prepared for whatever is coming next, and trade with confidence:

To receive detailed daily analysis, guidance and the updated daily Buy / Sell trigger levels being generated by the Trading the Line system before the market opens, and intraday alerts when appropriate, please become a Member and Sign up for Alerts & Observations – includes access to Members Area and the Explanatory Notes for all of the concepts discussed.

Disclaimer: This is the diary of a personal trading system, its methodology and the signals that it is producing. You are welcome to follow along but please understand that the information presented here is for educational purposes only. No recommendations are being made to buy, or sell stocks, options or futures contracts. Please consult your own financial advisor before making any investment decisions.

 

Technically a measured move – large up day, doji pause, and then same again, but really…?

A huge recent move up that must be playing havoc with many institutional traders (and leaving many others behind) because it is so far beyond expectations that alarm bells must be sounding across both sides of the fence. Expect more volatile days ahead for those reasons alone.

This recent activity reinforces the need for a price based system like trading the line, how else can one accommodate such extraordinarly behaviour in the markets? Still on a Buy Signal (since 2583) but the stop is a long way behind. Be sure to lock in profits as we continue in the days to come.

Be prepared for whatever is coming next, and trade with confidence:

To receive detailed daily analysis, guidance and the updated daily Buy / Sell trigger levels being generated by the Trading the Line system before the market opens, and intraday alerts when appropriate, please become a Member and Sign up for Alerts & Observations – includes access to Members Area and the Explanatory Notes for all of the concepts discussed.

Disclaimer: This is the diary of a personal trading system, its methodology and the signals that it is producing. You are welcome to follow along but please understand that the information presented here is for educational purposes only. No recommendations are being made to buy, or sell stocks, options or futures contracts. Please consult your own financial advisor before making any investment decisions.

 

A peak followed by some mild profit-taking in line with the pulse high and in keeping with the small gray T structure. Note that the market is attracted to the long term rising line from the Election low (still) – marked in orange. Note also that the market is repeatedly pushing upwards through previous resistance lines and this suggests to me that the market has a higher objective, and I think that this is previous long term trend lines, see the weekly chart in the free reports.

Be prepared for whatever is coming next, and trade with confidence:

To receive detailed daily analysis, guidance and the updated daily Buy / Sell trigger levels being generated by the Trading the Line system before the market opens, and intraday alerts when appropriate, please become a Member and Sign up for Alerts & Observations – includes access to Members Area and the Explanatory Notes for all of the concepts discussed.

Disclaimer: This is the diary of a personal trading system, its methodology and the signals that it is producing. You are welcome to follow along but please understand that the information presented here is for educational purposes only. No recommendations are being made to buy, or sell stocks, options or futures contracts. Please consult your own financial advisor before making any investment decisions.

 

 

No hesitation yesterday as the market gaps up and goes with strong momentum in a forceful manner – catch up quick if you can.

The oscillators are strong and long. Today is a pulse high.

Be prepared for whatever is coming next, and trade with confidence:

To receive detailed daily analysis, guidance and the updated daily Buy / Sell trigger levels being generated by the Trading the Line system before the market opens, and intraday alerts when appropriate, please become a Member and Sign up for Alerts & Observations – includes access to Members Area and the Explanatory Notes for all of the concepts discussed.

Disclaimer: This is the diary of a personal trading system, its methodology and the signals that it is producing. You are welcome to follow along but please understand that the information presented here is for educational purposes only. No recommendations are being made to buy, or sell stocks, options or futures contracts. Please consult your own financial advisor before making any investment decisions.

 

Some signs of hesitation at the highs – in-line with the project for a Thanksgiving high, as the market shifts back into the familiar low volatile grind of previous weeks.

Be prepared for whatever is coming next, and trade with confidence:

To receive detailed daily analysis, guidance and the updated daily Buy / Sell trigger levels being generated by the Trading the Line system before the market opens, and intraday alerts when appropriate, please become a Member and Sign up for Alerts & Observations – includes access to Members Area and the Explanatory Notes for all of the concepts discussed.

Disclaimer: This is the diary of a personal trading system, its methodology and the signals that it is producing. You are welcome to follow along but please understand that the information presented here is for educational purposes only. No recommendations are being made to buy, or sell stocks, options or futures contracts. Please consult your own financial advisor before making any investment decisions.

 

Purple haze, all in my brain
Lately things they don't seem the same
Actin' funny, but I don't know why
Excuse me while I kiss the sky

Jimi Hendrix, Purple Haze, 1970

–

The market continues gently pushing higher through Thanksgiving week – very much in keeping with the previous advances with a gap up above a declining consolidation phase.

The Large(r) T structure points to some kind of short-term peak here (perhaps some profit-taking), but with more to come and so does the new red structure, and so we should expect some choppiness as we move into the next phase of pulse highs and an echo high.

Whether we see a pullback here, or not remains to be seen. We should be prepared for some kind of profit-taking after the recent exuberance, perhaps even a re-test of the break out. But the structures also allow for a continuation directly into December – followed by a mid December peak, a pause and then a rally into New Year.

The strong oscillators and especially the recent move in the T volume oscillator support a general move higher.

Be prepared for whatever is coming next, and trade with confidence:

To receive detailed daily analysis, guidance and the updated daily Buy / Sell trigger levels being generated by the Trading the Line system before the market opens, and intraday alerts when appropriate, please become a Member and Sign up for Alerts & Observations – includes access to Members Area and the Explanatory Notes for all of the concepts discussed.

Disclaimer: This is the diary of a personal trading system, its methodology and the signals that it is producing. You are welcome to follow along but please understand that the information presented here is for educational purposes only. No recommendations are being made to buy, or sell stocks, options or futures contracts. Please consult your own financial advisor before making any investment decisions.

 

A pause after the surge on Tuesday and now we wait for the post Thanksgiving shopping binge.

The Osc oscillator responds to the recent strength with a Buy Signal.

Be prepared for whatever is coming next, and trade with confidence:

To receive detailed daily analysis, guidance and the updated daily Buy / Sell trigger levels being generated by the Trading the Line system before the market opens, and intraday alerts when appropriate, please become a Member and Sign up for Alerts & Observations – includes access to Members Area and the Explanatory Notes for all of the concepts discussed.

Disclaimer: This is the diary of a personal trading system, its methodology and the signals that it is producing. You are welcome to follow along but please understand that the information presented here is for educational purposes only. No recommendations are being made to buy, or sell stocks, options or futures contracts. Please consult your own financial advisor before making any investment decisions.