Weekly Update

Last Sunday I wrote about the “Arrow” and “Double Inside Bars” on the weekly chart of the cash S&P500. The bottom line was that “… the break (still continue to beware of false breaks before the actual move occurs) is now imminent!” It now certainly appears as though the pop higher into Wednesday’s peak was the false move and that we are now seeing the true break to the downside. This would make sense within the context of the technical situation on both the weekly and monthly charts – they are on “sell” signals.

Back on February 8 I wrote: “Now I want to see if the weekly chart can generate a technical “buy” signal. For us to get in a position to do that this week we would need the S&P to close below 1325.19 …” This is still the case. For the weekly chart to have a chance at generating a “buy” signal I have to see a weekly close below 1325.19.

Today’s chart depicts the “Medium” term Price Pulse points. It is one level higher than the “Intermediate” term chart. When the Z-pulse completed in January a “buy” signal would only be generated if the “C-Y” trendline could be broken. It was not as we made our A-pulse high at the start of February. After the B-pulse low was made on February 7 the new signal for a “buy” would be to punch above the A-pulse peak of 1396.02. We have not been able to accomplish that and so this chart remains on a “sell”. It also complements the weekly chart’s technical picture in explaining the current breakdown in the daily chart.

Tomorrow I will take a quick look at the new monthly chart as well as trade parameters for a new short.