The Fib fans, combined with the red trendline still support the 1200-1225 levels as upper resistance for this rally from 1144.50, and still with no bearish fibs fan in site to provide anymore upward price resistance.
After the close, Things did get exciting mid-day, but nothing that was out of the ordinary. The trend continues up, as no important lows were taken out, and the wave down for the sell-off counts out just fine as a double zig-zag for the 2nd wave of 5. The indicators did burn off ALL their over-bought conditions and now are ripe for another ran higher on the price action.Breadth for the day ended at 1.74:1, decliners on increasing volume. Amazing the breadth that low for the size of the price movement today, again something that does not support the bearish case. The bears need a good 5:1, decliner day with follow-thru to get serious about any sustainable sell-off and the numbers for the last couple of days just do not support it.
Levels for tomorrow start at 1165.77 for a minor low, and 1161.58 for a major low at which point the SPX is making important lower lows and the trend becomes down.
Click here for a live, and updated chart!!!8:14, So far, an uneventful morning, with the SPX opening in the red. Trend is still up, with no lower lows being made, even though volume is up, the breadth is not confirming this as a major bearish move, currently running less then 2:1 decliners.
Hi michael
ReplyDeleteNO GUARANTEEE, BUT tomorrow coUld set the staqe for the coming decline.
JAY
This appears to be an ABC with an extended fifth ending diagonal. In C, waves 1 and 3 were equal. A 1.618 for 5 gives a target of 1200/1206 area. The ED starts from blue 4. Blue B is wave A of the ED. We are about to enter wave E.
ReplyDeleteAll of a sudden the bears are very quiet. Just a few weeks ago almost every comment left here was bearish - P3 armageddon etc etc. The lack of bears in itself suggests a short term peak is near.
ReplyDelete