S&P500 signal

I guess that leaks from the Fed meeting lifted the spirits of the mkt today and appear to have set up a Buy Signal.

As we have a tight squeeze in place now less than 30 pts – watch the action at either 2011 or 1980 for an indication of the move -> 2050 or 1950.

Oscillator gives us a Sell Signal or Sell Warning – which has in the past warned that price may only make a token new high before selling off.

It is important not to think of that as a short signal until we see a confirmation signal such as a move below the mid-point or a short-trigger (8/21 crossover), but does allow us to consider entering an OTM call credit spread as a hedge.

Today's action brings us back within easy strike of the all time high again and yesterdays low held (for now). All good signs that the price structure is now following the split centre (blue).

We should then theoretically grind higher into september 17, pullback into the 23rd, and maybe higher into the 30th.

With recovery back above 1995-1998, and confirmed by a close above 2006, the S/T Buy Signal is re-affirmed.

With Friday's relief rally (after Futures sell-off overnight) the market made a Buy Signal during the last few hours and closed above 1929.

A rally to the mid-line at 1955-8 is now on the cards, and possibly a move back to the all-time high for a second look (maybe a kiss goodbye?)

Get is still saying resistance at 1944 and possible lowere low but the T structure is suggestive of a rally into early October. A new high in the 2020's – not out of the question. Certainly if the Russian problem is over?

Yesterday's non response to the Fed + the overnight selloff (Argentina probable default) indicate that a Sell Signal should occur today at the open. It is clear that we need a pullback – but how far down?

Initial support indicated by MOB is 1945 at the 55EMA, then 1935, then 1920s.

As sell signals can rapidly develop into Buy signals at lower levels, I have drawn a possible T structure that could develop out of this, and will re-draw daily.