Hmmmm.... Looking More and More Bullish

Although the cash S&P500 formed a downtrending price bar on Thursday it can not be counted as a bearish session. In fact, the failure to move below 879.61 indicates that the Z pulse has already completed; and this has bullish implications for the immediate future. A break to the upside might well be in the offing from the triangle pattern shown in today’s chart.

The boundary lines on the triangle are similar to the current TD Lines that price action continues to be squeezed between. The Demand line sits at 883.31 along with the intermediate moving average (see yesterday’s chart). The Supply line has become steeper after yesterday and now lies at 909.54. We must open above the supply line to qualify it while to qualify the demand line only requires a break below it. A “breakout” to the upside from this triangle formation would most likely run until 8 or 9 June.

The experimental trade position remains short from 897.34 (5/12). Due to the failure of the z pulse the stop & reverse should be lowered to 924.61.