Moving Again

Instead of pulling back the cash S&p500 only hesitated at resistance over the past couple of days. The negative Reversal I've been mentioning recently has now been officially negated and we can set our sights on two price targets over the next few days: 1470-1476 and then 1483-1496. From Sunday's "roadmap" post you can see that I favor the higher target to end the current "c" wave on Monday.

We'll see about that .... I won't marry that view (maybe only date it for a few days!); roadmaps are only good as long as they keep you on track.

Cheers.

Stalled

No changes in the analysis this morning as we continue to fight resistance at the 1447 level. The negative reversal in the RSI mentioned yesterday was not negated by the small close upwards and remains in play.

Moving Averages

The cash S&p500 is having a hard time at resistance provided by the "red" moving average. Notice how this was also at a cluster of many open and closing prices between Aug 9-14. 1447 is also 180 degrees up (1/2 the circle) from the bottom.

There was also a negative reversal in the RSI chart yesterday at this resistance; target of 1399. I don't feel quite as confident in this signal as the last one since my other momentum indicator is not confirming. However; I do feel a pullback here would not be surprising. A pullback for a day or two would set us up for a run towards the blue and green moving averages.

Where do we stand? Part II

The "roadmap" at left reflects my current thinking on where the cash s&p500 is headed over the next couple of months. It may change tomorrow but I am one who needs this kind of concrete "view" to help me along the way.

Note that I now think that we are forming an Elliott Wave Zigzag pattern from the high into a proposed October/November bottom. Wave "B" of that Zigzag (which we are in now) is a contracting triangle.

I'll keep this "bigger picture" in mind and update it as necessary as we go forward.

Cheers and enjoy the rest of your weekend!