I am Back in the Saddle

A week has passed and the cash S&P500 is lower than when I last wrote. In between it was able to rally into the previously identified resistance zone of 1289-1293. After turning down from that resistance area (note the confluence of lines at that area on today’s chart) the market fell sharply to the short (red) moving average. After holding that support line for one day last Friday we have now fallen sharply again.

Price is now “retesting” the July 15 low. We closed at support yesterday. The next lower level of support is at 1219-1223 and then 1211-1216. I expect one of these three areas to hold and so I think the bulls will be able to hold the July 15 low and then rally us above the 1289-1293 resistance area.

For those bold enough to have gone long against the higher level trend down, the Wilder stop is now just below the market at 1232.88.