S&P500 daily update

With the sharp move down the last 2 days the first major line of support (line 2.) comes into easy reach and I would expect to see some consolidation of the down move, a pause or even a bounce in this area. If we break that line then as with the line 1 break, then line 3 becomes the target.

The oscillator is showing weakness again and this is a reminder that when the oscillator is weak (but not oversold) that further weakness can be expected and not to trust any buy signals.

We are right on the Buy/Sell line and expect a short-term bounce. perhaps a dead cat. It looks like line 1. was back kissed and said goodbye, so line 2. would now be target.

So far so good. A bounce from lower bollinger to upper bollinger. A pause and first test of the breakout.

Long term I am now looking for a move towards trend line 2, or 3. at some point in the future (May 1st), perhaps after a series of tests of the upper trend line 5.

The path of least resistance seems to be up again. Interesting very strong trend line resistance to overcome at about 1905 and rising. If we can get thru that then we target 1930ish

A Buy Signal occurred with yesterdays action above 1872.

The oscillator is starting to recover, though I would like to have seen it pull back to zero first. Perhaps this will be short-lived.

Yesterday's close above 1872 is a cautious Buy Signal, which I think requires a bit of confirmation.

If we can stay above 1866 for anoyther day or 2 then I would be more committed.

More of the same. Perhaps but a large squeeze is setting up. So be prepared for a volatile move in either or perhaps in both directions. A slingshot maybe. If we get a Buy signal with the oscillator close to zero, take it seriously.

Doesn't want to go down, doesn't want to go up… something's gotta give.

Having confirmed the break of line 1. it seems like we may be moving in a downwards channel heading for either line 2. or line 3. with targets at 1834 or 1786 respectively.

Mixed signals. Wait for the oscillator to confirm the move, and/or wait for a closing price above or below the current congestion.

The upside would appear to be rather limited, and so I am inclined to favour the downside. However recent action is a reminder of how bullish the market is/has been.

The recent increase in daily volatility since beginning of 2014 is also suggesting that I will need to increase the intraday stops for the signals, hence 2 recent sell signals at the low of the day.