There can be no denying that the cash S&P500 had a very bullish day yesterday as the large uptrending price bar was accompanied by increasing volume. If my short-term roadmap is to be followed we must see a reversal before the August 11 high of 1313 is broken.“I can’t see us going much above 1293 and I think we will see a decline that drops below 1261 by early September. In fact, we are now starting to stare at a re-test of the mid-July low; which I think will hold (at least on this retest). Bottom Line: I am short-term bearish.”
Yesterday’s price action must lead to modification of the above paragraph. “…going much above 1293 …” is now replaced by “…. going above 1313.15 …” Finally, “… a re-test of the mid-July low” is better phrased as “… a re-test of the secondary late-July low of 1234”.
Today’s chart shows resistance from 1304-1307 and then again with the old high at 1312-1315. The Wilder Directional Movement System continues to show price in a trading range (non-trending). The Parabolic SAR was broken yesterday at 1295.14 and stopping out the under-development trading system with a loss (short from 1276.84).
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