The cash S&P500 formed a downtrending day as it failed at overhead resistance. This is the second time that the average has failed to make it through the 1289-1296 area. At the end of the trading session price was sitting on support (provided by two moving averages and a dynamic Gann line) as seen on the provided chart.The Directional Movement System remains flat as we failed to push above Wednesday’s high of 1291.67. The Wilder stop (Parabolic SAR) on any open long position is now at 1255.85.
A failure to rally immediately back above 1291.67 today would cause Wednesday’s high to become a price fractal high. Such a development would significantly raise the odds that a swing high has been made. This; in turn, implies that the market will break below 1247.45 and test 1234.37. A break of 1234.37 implies a retest of the July 15 low.
A price drop below 1257.91 today would put my under-development trading system in a short position.
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