The cash S&P500 formed an outside day on Monday. After slipping slightly under Thursday’s low the bulls were able to do what they had to do to keep this rally alive: move price immediately back above 1291.67 and we are now at the top of the overhead resistance band of 1289-1296 (see chart).
Should the rally continue, we see that; after minor resistance at 1307, there is a stronger band of resistance from 1315-1322. This area includes the short moving average from the weekly chart.
We had a bullish crossing of the DI lines yesterday in the Directional Movement System is concerned. Wilder says that the point to go “Long” is now yesterdays high of 1297.85. Note that this “system” is currently flat. The Wilder stop (Parabolic SAR) on a previous long position is now at 1260.89. A price drop below 1260.53 (the current support line in bright green) today would put my under-development trading system in a short position.
As I wrote back on July 28, “As far as a general roadmap goes I am looking for the recently begun rally from July 15 to last at least until Labor Day (early September) but I do not expect 1440 to be broken.” I still believe this to be the case. Bottom line: The short-term trend is still up: bear market rally continues.
Should the rally continue, we see that; after minor resistance at 1307, there is a stronger band of resistance from 1315-1322. This area includes the short moving average from the weekly chart.
We had a bullish crossing of the DI lines yesterday in the Directional Movement System is concerned. Wilder says that the point to go “Long” is now yesterdays high of 1297.85. Note that this “system” is currently flat. The Wilder stop (Parabolic SAR) on a previous long position is now at 1260.89. A price drop below 1260.53 (the current support line in bright green) today would put my under-development trading system in a short position.
As I wrote back on July 28, “As far as a general roadmap goes I am looking for the recently begun rally from July 15 to last at least until Labor Day (early September) but I do not expect 1440 to be broken.” I still believe this to be the case. Bottom line: The short-term trend is still up: bear market rally continues.
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