Here is the same view shown on the 30 minute chart with wave 4
(green) being formed at today's lows. I showed this as an
alternate on Thursday Night newsletter and posted on the blog again
on Friday. With the late surge on Friday, the SPX may be poised to
test/make new highs next week (must establish higher low on any
pullback) Pullbacks must remain above 1990. Again, one must
project, monitor and adjust with respect to mapping.
As I stated last week, the recent action (choppy action that
produced daily doji's) on the SPX was pointing to a correction (at
least short term) and we did see a pullback that followed of 21
points. For the intermediate term, there remain a few options that
I'm watching but let's first see how the market reacts early next
week.
With that said, the SPX has resistance at prior highs near 2011
and then the 2019 pivot RANGE (+/- 8 pts). Should the market
fail to clear 2011 early next week and break below 1990, I would
expect the SPX to at least test the 1973 pivot or the 1956 pivot
below which equate to the 38-50% Fibs. A deeper pullback that would
break the rising trendline (see SPX daily below) would warn of a
re-test of the 1905 lows. Inflection points are always tricky
(especially tops) and one should not be consumed with picking exact
tops but instead trail stops upward in accordance with their risk
tolerance. We will continue to monitor and discuss as more evidence
mounts next week.
SPX 30
Posted by steve on 6th of Sep 2014 at 10:30 am
$SPX - Chart Link
Here is the same view shown on the 30 minute chart with wave 4 (green) being formed at today's lows. I showed this as an alternate on Thursday Night newsletter and posted on the blog again on Friday. With the late surge on Friday, the SPX may be poised to test/make new highs next week (must establish higher low on any pullback) Pullbacks must remain above 1990. Again, one must project, monitor and adjust with respect to mapping.
As I stated last week, the recent action (choppy action that produced daily doji's) on the SPX was pointing to a correction (at least short term) and we did see a pullback that followed of 21 points. For the intermediate term, there remain a few options that I'm watching but let's first see how the market reacts early next week.
With that said, the SPX has resistance at prior highs near 2011 and then the 2019 pivot RANGE (+/- 8 pts). Should the market fail to clear 2011 early next week and break below 1990, I would expect the SPX to at least test the 1973 pivot or the 1956 pivot below which equate to the 38-50% Fibs. A deeper pullback that would break the rising trendline (see SPX daily below) would warn of a re-test of the 1905 lows. Inflection points are always tricky (especially tops) and one should not be consumed with picking exact tops but instead trail stops upward in accordance with their risk tolerance. We will continue to monitor and discuss as more evidence mounts next week.
http://stockcharts.com/h-sc/ui?s=$SPX&p=D&yr=0&mn=8&dy=6&id=p94466852234&a=267821384&r=1410015332280&cmd=print
Thanks...
Posted by burkmere on 6th of Sep 2014 at 02:01 pm
Great response....