The cash S&P500 formed a downtrending bar with a higher close and higher volume on the daily chart Wednesday. We made low at the Dynamic Gann Line (down sloping purple line) at the bottom of our identified support range and then rallied to finish the day higher.
Although a rally appears to have started here I am not hopeful that the bulls will be able to move prices back above 1313 on this bounce. Instead, I expect a choppy upwards move over the next week that fails to make a new high followed by a decline that drops below yesterday’s low by early September. The Wilder Directional Movement System continues to show price in a trading range (non-trending) and I expect that in a couple of weeks prices will be close to where they are now.
The Parabolic SAR stands at 1307.46. My still under-development trading system is short from 1276.84. A move today above the SAR would switch me to long.
Although a rally appears to have started here I am not hopeful that the bulls will be able to move prices back above 1313 on this bounce. Instead, I expect a choppy upwards move over the next week that fails to make a new high followed by a decline that drops below yesterday’s low by early September. The Wilder Directional Movement System continues to show price in a trading range (non-trending) and I expect that in a couple of weeks prices will be close to where they are now.
The Parabolic SAR stands at 1307.46. My still under-development trading system is short from 1276.84. A move today above the SAR would switch me to long.
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