S&P500 daily update

A little bit of follow through from yesterday's bounce but this is sold into at the declining line from the recent high.

Still stabilising and position neutral. Momentum fading and close to an Oscillator sell signal.

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There's always a man faster on the draw than you are,
and the more you use a gun, the sooner you're gonna run into that man.
– Gunfight at the O.K. Corral, 1957, Dir: John Sturges

Straight down from the open and quickly sliced through the 'cover signal line' into the mid channel for a strong recovery bounce that very nearly regained the Buy Signal line, but not quite.

This is follow through from the selling initiated by the projected high and echo high and leaves a nasty declining resistance line to be negociated in due course. It confirms 20 October as an important short term peak at the strong arm of the T structure.

There may well be some follow through from the bounce as we have another projected high for tomorrow and another echo high scheduled for tomorrow or Friday.

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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.

 

“From this day to the ending of the world,
But we in it shall be remembered –
We few, we happy few, we band of brothers;
For he to-day that sheds his blood with me
Shall be my brother; be he ne’er so vile,
This day shall gentle his condition;
And gentlemen in England now-a-bed
Shall think themselves accurs’d they were not here,
And hold their manhoods cheap whiles any speaks
That fought with us upon Saint Crispin’s day.”
– William Shakespeare, Henry V

Initial bounce sold into, some unfinished business maybe but still holding up above Friday's gap.

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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 market opens at all time highs and initiates a retracement.

A slow but persistent day of selling displaying a distinct lack of buying power – the effects of an Echo high* and an important peak projection of the T structure.

How much of a retracement is required remains to be seen, but for now, the market is still well above the Buy signal line, and additional peaks are projected for later this week and into November.

It looks to me that we are now entering a period of sideways consolidation that could see additional highs and lows as the market defines its new upper range, whilst building energy for the next move.

* This is the first of a series of echo highs projected from the August period. For more information please subscribe to the daily updates.

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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.

 

Now that's the spirit !

Friday's push higher accurately projected by the T structure, with a solid gap up and go and close at the highs type day as the market continues to leave bystanders behind. This train waits for no one.

Momentum ticks up, as does the T volume oscillator.

This is also in-line with the scheduled echo high and so it remains to be seen whether this is an important peak or whether the additional projections will continue to lift the market higher next week. Hedge and lock in profits accordingly.

In the meantime, higher highs continue to beget higher highs. For those who still do not understand why the market is moving higher and will probably continue much higher in the coming months, please read my recent free reports.

Enjoy the weekend.

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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.

 

A gap down for a test of the current advance found important support and plentiful buyers for a text book recovery all the way back to close at a token new high.

The strength is in-line with the expected peak projected by the major arm of the T structure which projects a peak for today. There is also an echo high scheduled for today and the combination suggests that we may see some strong selling either today or just after the high on monday.

With one successful test of the recent advance acheived, I would now expect to see the market start to define an upper range with a series of probes to the upside and to the downside whilst continuing its grind slightly upwards and sideways.

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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.

 

“I learned that just beneath the surface there's another world, and still different worlds as you dig deeper.
I knew it as a kid, but I couldn't find the proof. It was just a kind of feeling.
There is goodness in blue skies and flowers, but another force – a wild pain and decay – also accompanies everything.”
– David Lynch

Still gently pushing at the highs, teasing us with the possibility of breaking higher.

Overnight breaking news from Catalonia has send the markets down a little. This will be the first real test of the market's strength since 9 October and how the cash market responds will be telling.

Be prepared for a cover signal should the markets continue to move lower today.

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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.

 

“you just had to be still and have faith, that was the main thing.”
– Jim Dodge, Fup, 1983

–

The market continues with a little shake and grind to wander slowly higher in what can only be described as an exceptionally calm and linear manner just below the resistance line.

With such apparent smoothness it seems likely that the market will use every last bit of the current T structure, and so we should watch each projected arm of the structure carefully.

It seems that the market has yet to find its target, but at some point it will, and then I would expect the market to open out into a larger range, pushing out in both directions and establish some new support levels.

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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.

 

“I have persecuted its native inhabitants beyond all reason. Whether gentle or simple, I have cruelly oppressed them; many I unjustly inherited; Innumerable multitudes, especially in the county of York, perished through me by famine or the sword."
– William the Conqueror

–

The market continues to gently push against the rising resistance in a continuation of the low volatility drift higher whilst momentum and breadth fade – suggesting that we may be entering a sideways distribution phase prior to a possible decline, most probably towards the end of the current T structure.

However, the current indications are that any decline will be relatively shallow and that the current T structure is potentially larger and could draw strength from earlier declines than drawn.

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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.

 

"God is not pleased. We have enemies of the faith in the kingdom".

On Friday 13 October, 1307, numerous Knights Templar were arrested and coerced into false confessions of heresy – one of the origins of the superstition surrounding Friday the 13th.

–

Market opens lower in-line with yesterday's short term peak projection from the T structure, takes a little looks-see at the all time high and re-traces.

Still very much within the recent sideways funk and a tight range that might be expected to expand a little as the market plays wait up / catch up.

T volume oscillator drops below zero and flashes a warning signal and momentum fades a little more.

The pulse high scheduled for today could certainly push the market down some but another arm of the T structure projects a high for Monday and this continues to suggest sideways and upwards until we reach a more defined peak.

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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.