Quick Note: Last Week's comments:
Well as expected, today the SPX broke out of its recent range with a nice thrust higher. That ending diagonal yesterday made for an objective entry as per our wave structure - it trapped some bears which led to a gap and go day. Since the SPX has now approached our target area, it's wise to protect profits in accordance with your plan. As discussed last week and again today in the trading community, the SPX has a timing window over the next few days to monitor for an eventual turn. I'm still hoping for a test of the SPX 4200 area but my style is to protect profits after big gains - make sure you develop and adhere to your plan.
Very sluggish action today with price trading in a narrow range all session. The SPX structure still appears to need one more push to complete the pattern but not sure if it's has the momentum to reach 4200+ in this timing window. With the above backdrop, I have added the inverse ETF's to the watchlist.
Monday Updated: Well, the the SPX did indeed make make a new high today (after forming a triangle pattern on Friday) but as expected it was soon faded with the SPX falling nearly 60 points during the session before bouncing some into the close (warning shot for the bulls). However, the SPX has yet to break down from it's prevailing channel so let's continue to monitor this week. Support and resistance levels are posted as a sticky post at the top of the trading community.
Please take a moment to look at the trade ideas.