The cash S&P500 market formed a downtrending price bar on the daily chart Monday. The price pulse upward from 1406.10 completed at Friday’s high of 1488.94. Both volume and price movement decreased as traders lost interest in the recent bull move up from the 11/26 low.
Besides being turned back by resistance; right at the intermediate and long moving averages which coincided with the strong chart resistance at the 1490 level, the RSI has turned down to form a negative reversal with the price made on 11/6. The projected minimum price target is 1400.05.
This price action (with a price projection below that of the 11/26 low 1406.10) leaves the door open as to whether the move down from the 10/11 high is complete or not. At this point I believe it is, but even if it is not any new low should represent a good buying opportunity in SPY since that would be the Elliott wave five low. This count (not my preferred) is shown in today’s chart.
From here any move below 1458.36 (without first breaking 1488.94) would cement the idea that the Elliott wave up from 11/26 is complete. The downward move should complete by 12/20. I still plan to use this decline as a place to get long the SPY.
No comments:
Post a Comment