A navigation system for trading the S&P500 index
Market seriously overbought, above gray channel, and close to the S2 line.
Risk of reversal quite high.
Could be quite choppy and toppy into the projected mid November peak.
No CommentsA gap up and close at new highs – what a couple of weeks… the bull keeps going.
And looks like a new bull run is being initiated, with very strong volume oscillator.
Watch out for resistance along S2 for potential kiss goodbye, and target 2050 at the MOB.
No CommentsNothing to see here, move along now, just a market going up vertically.
Happy Halloween!
No CommentsStrength was sold (note touch of upper grey channel) and weakness was bought – indescision.
It looks like we need some consolidation to absorb the recent move, but the market wants to go up.
No CommentsContinued strength, and moving into another momentum peak.
Dare I say the current target looks like 2040-50.
No CommentsTo all intents and purposes we have now acheived the recovery from the 10% decline from the Sept 19 peak, and if the 'down-trend' was to stay in place then this is where we would expect to see the recent rally to falter.
This is clearly shown by the ellipse tool.
However the T structure looks strong with a momentum peak on Oct 24, and so we should expect to see continuation at least into mid November.
No CommentsThe last 2 days seem to have resolved the resistance at the 55 Ema (for now), and it wouldn't be surprising to see new highs or matched highs
The current T structure suggests that the strength will last into a topping pattern between 11th and 19th of November, it is slightly fuzzy due to the flat top between 26 August and 8 September.
No CommentsYesterday's strong action reconfirms the L/T Buy Signal, but we did see failure above the 55EMA so we may need a few days to get through here. Some consolidation is required.
Also we reached the end of the first arm of the current T structure, and so we should expect some profit-taking.
No CommentsFailure at the 55EMA and dropping back below the mid-point is potentially a L/T Sell signal. Unconfirmed due to the current S/T Buy Signal. It may just be that the market got over-heated. Note RSI 2 had got above 96 on tuesday. With the current volatility it is too close to call, particularly as 1929 was breached only in the last half hour of the day.
Futures are very positive (+13), so it looks like yesterday afternoon's negativity was unfounded.
No CommentsAnd another very strong day bringing us back up above the mid-point and providing the Long Term Buy Signal.
Note: the recent correction bounced hard at the 350 ema and that Terry laundry described this as the 'optimum moving average' for the S&P500 – a fantastic buying location for a bounce, a failure there would have significant repercussions (eg August 2008)
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