The cash S&P500 began the week with a downtrending price bar. When combined with the "inside" day made last Friday, the April 2 high is now defined as both a fractal high and a Level 1 Price Reaction Point (PRP). Technically the daily chart looks toppy here as we have now put in a negative divergence with price on the RSI (see chart).
That being said, the up trend in the PRP’s (higher lows and higher highs) continues; and the end of the wave up from the March 6 low can not be “finalized” until that trend breaks. Right now it will take a move below 779.81 to do that.
I have added a couple of interesting Fibonacci levels (dashed green and blue horizontal lines) that align with the closing prices on two of the last three sessions and the 180 degree Gann target (solid horizontal red line). These resistance levels were drawn using closing prices of the previous swings from November 21, 2008 to January 6, 2009 and then January 6 to March 6. Perhaps even more interesting are the Dynamic Gann Lines (sloping orange) drawn from those same swing points. Note how they caught both the recent swing high and the previous swing low of March 30.
To recap: The chart is looking like a top is being made but I want to see the trend change before getting too bearish here.
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