The hidden negative divergence on the daily is considerably more pronounced on the SPX but both of these indices seem to be showing a bit of weakness. It could just be healthy pullbacks, though.
Everything about the Aussie pattern says head and shoulders bottom except the glaring lack of breakout volume, which is a requirement for the pattern. As long as the neckline holds on a pullback it can be viewed as still bullish imo. Incidentally, the head measurement from the neckline lands exactly on the .618 retrace of the last swing high, which is interesting.
Regarding the SPX, all eyes are on that 2700 level, which is also the .618 of last spill, and would be quite the hurdle if we even get there. Yesterday's whipsaw action on the SPX didn't give a whole lot of clues as to its direction. With a gun to my head I would have to say these indices are headed down for now but kinda seems like we're in a no trade zone at the moment. My current plan is to watch SPX for a break over 2700 for a long or to go short on a rejection of that level. I also think a good play could be to short a break of support. I see support down to the mid 2500s on the SPX weekly, so it would probably take a break of that for me to consider a positional short.
As much as I hate to say it, I feel like back and forth news headlines are dominating the price action recently but hopefully we will get a better idea of direction soon.
Everything about the Aussie pattern says head and shoulders bottom except the glaring lack of breakout volume, which is a requirement for the pattern. As long as the neckline holds on a pullback it can be viewed as still bullish imo. Incidentally, the head measurement from the neckline lands exactly on the .618 retrace of the last swing high, which is interesting.
Regarding the SPX, all eyes are on that 2700 level, which is also the .618 of last spill, and would be quite the hurdle if we even get there. Yesterday's whipsaw action on the SPX didn't give a whole lot of clues as to its direction. With a gun to my head I would have to say these indices are headed down for now but kinda seems like we're in a no trade zone at the moment. My current plan is to watch SPX for a break over 2700 for a long or to go short on a rejection of that level. I also think a good play could be to short a break of support. I see support down to the mid 2500s on the SPX weekly, so it would probably take a break of that for me to consider a positional short.
As much as I hate to say it, I feel like back and forth news headlines are dominating the price action recently but hopefully we will get a better idea of direction soon.
Comment:
both indices are trading over the 50 RSI on the daily and in uptrend territory on the daily MAC-D, albeit both sloping down. As long as the daily 50 RSI level remains support and we remain in positive territory on the MAC-D the uptrend is still intact for now.
Comment:
*the secondary uptrend at least