Weekly Chart

This past week the cash S&P500 formed a black candlestick that was very close to a perfect Doji. The pattern we wound up with is called a “Hanging Man” - which means that if the bulls can not rally the market next week they are about to be hung! Matching this idea of “do or die” is the fact that a TD Supply line is just overhead at 875.23 (we closed at 866.23). A break of that supply line next week would be qualified and has a price projection to 1085.29! Just the magnitude of this target price makes the price action next week crucial. We are at a critical juncture in the market.

The objective trend remains “sideways to down” on the weekly chart. Note that Fibonacci resistance (874-882) has paused the bull run. Also significant is that 876 (our high so far) is 315 (+360) degrees on the Gann wheel from 667 (the March low).

Tomorrow morning I will look at the daily chart and take a stab on which way we will break. Enjoy the remainder of the weekend!