The cash S&P500 formed a strong rally (uptrending) day on the daily chart. Disappointing (to those of the bullish persuasion) must be the fact that volume was lower than on Wednesday. More positive was the fact that; at least for now, it seems that price has held firm at critical long term support in the 1188-1204. Although the ADX nudged higher again it does lag just a tad so we’ll see what it does over the next couple of sessions. A technical “buy” signal has been generated on the daily chart and the weekly will see it as well if we can continue this rally over the next two days. But that is only an “if” at this point.
Since the weekly trend is down (Using the D-Wave on the weekly chart to define trend) any rally (from Tuesday’s low) at this point must be considered as only a retracement of the move down from the May high. If I had to pick one target zone for price at this point it would be 1342-1351.
We start the day in a band of overhead resistance which stretches up to 1260, which is associated with the current resistance line. Above that we are clear to run at 1290. Once again support below the market is in the 1188-1204 area.
To continue with Wilder’s Parabolic Stop and Reverse methodology, the stop on any remaining shorts would be just above the market at 1250.65.
Since the weekly trend is down (Using the D-Wave on the weekly chart to define trend) any rally (from Tuesday’s low) at this point must be considered as only a retracement of the move down from the May high. If I had to pick one target zone for price at this point it would be 1342-1351.
We start the day in a band of overhead resistance which stretches up to 1260, which is associated with the current resistance line. Above that we are clear to run at 1290. Once again support below the market is in the 1188-1204 area.
To continue with Wilder’s Parabolic Stop and Reverse methodology, the stop on any remaining shorts would be just above the market at 1250.65.
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