We began the trading week with an “Outside” day on the cash S&P500. It was a bullish session in the spirit of making a triple top with the Y pulse (developing now) as described in my last posting.
There was a positive reversal signal in the RSI yesterday that projects to just under 914 and so a few more points of upside action are required to fulfill that target. Beyond that, it is now just a matter of seeing which way we break out of the lateral range that has developed. My vote is for a downside break but I am not sure the market cares what I think! Price continues to bounce between the two TD lines. The Demand line sits at 880.28, and that is where the intermediate moving average is (solid blue line on the chart). The Supply line lies at 921.12. As the price pulse model doesn’t allow for the current Y pulse to last much longer in time I expect to see one of these lines hit within the next two sessions.
The experimental trade position remains short from 897.34 (5/12); stop & reverse at 930.17. Lower the stop & reverse to 924.61 on a move below 879.61 Tuesday.
A trend-continuation short trade would be taken Wednesday ONLY on a break of 880.28. If taken the initial stop would be placed at 911.77 or Wednesday high (whichever is higher). Calculated price objective: 834.96.
No comments:
Post a Comment