At the start of last week, the major indexes continued lower on
Monday making new short term pullback lows (following increased
tariff talk). After reaching oversold readings on Monday, the
market managed to stage a three day rally with prices peaking out
mid-day on Thursday before giving up some gains into the close on
Friday. Thus far, the bounce on the major indices has been a
normal corrective advance that has failed near at 50-618% Fib
retrace as we have outlined on the 60 minute charts. As you
know, we are currently mapping this advance as a wave B bounce
following the clean symmetry break on the previous decline.
Unless the SPX can hold and impulse higher, we expect price
to come back down and at least retest the 2800 area if not zig zag
lower. For the bulls, we would need to see price hold above
2853 early next week and rally up to new bounce highs. As
always, continue to trade what's in front of you and respect your
triggers.
Enjoy the balance of your weekend,
Steve
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Weekend Newsletter At the start of
Posted by steve on 19th of May 2019 at 01:19 pm
Weekend Newsletter
At the start of last week, the major indexes continued lower on Monday making new short term pullback lows (following increased tariff talk). After reaching oversold readings on Monday, the market managed to stage a three day rally with prices peaking out mid-day on Thursday before giving up some gains into the close on Friday. Thus far, the bounce on the major indices has been a normal corrective advance that has failed near at 50-618% Fib retrace as we have outlined on the 60 minute charts. As you know, we are currently mapping this advance as a wave B bounce following the clean symmetry break on the previous decline. Unless the SPX can hold and impulse higher, we expect price to come back down and at least retest the 2800 area if not zig zag lower. For the bulls, we would need to see price hold above 2853 early next week and rally up to new bounce highs. As always, continue to trade what's in front of you and respect your triggers.
Enjoy the balance of your weekend,
Steve