For the last few weeks the Stock bulls have been relentless, pushing beyond resistance levels. There have also been bearish momentum signals that have not been reliable. If a market moves beyond a support/resistance area it will gravitate to the next support/resistance area. As for momentum indicators, there are no indicators that work 100% of the time.
The SPX and the rest of the US stock market is at a very important junction. One of the alternate SPX wave counts from the 2/11/16 bottom is that a 3rd of a 3rd wave up began on 11/3/16. If so it implies a steady move up in stock prices over the next several weeks.
I'm very suspicious of this wave count because.
1) Previous leader NDX has still failed to make a new 2016 high.
2) Three of the Nine SPX sectors have been lagging the broader market. The three lagers are; Utilities, Health Care, and Consumer Staple. If a 3rd of a 3rd wave up was under way all nine sectors should be moving up in unison.
3) SPX is at the resistance area of major and intermediate Fibonacci points. See chart.
If a powerful bull market is underway the SPX will have to break through these resistance points in the next few trading days. If not, watch SPX 2187.40 this is a very important support zone that if broken would be powerful evidence that a 3rd of a 3rd up is not underway. A break of SPX 2187.40 would open the door for the SPX to move down to at least the 2050 area.
Mark
The SPX and the rest of the US stock market is at a very important junction. One of the alternate SPX wave counts from the 2/11/16 bottom is that a 3rd of a 3rd wave up began on 11/3/16. If so it implies a steady move up in stock prices over the next several weeks.
I'm very suspicious of this wave count because.
1) Previous leader NDX has still failed to make a new 2016 high.
2) Three of the Nine SPX sectors have been lagging the broader market. The three lagers are; Utilities, Health Care, and Consumer Staple. If a 3rd of a 3rd wave up was under way all nine sectors should be moving up in unison.
3) SPX is at the resistance area of major and intermediate Fibonacci points. See chart.
If a powerful bull market is underway the SPX will have to break through these resistance points in the next few trading days. If not, watch SPX 2187.40 this is a very important support zone that if broken would be powerful evidence that a 3rd of a 3rd up is not underway. A break of SPX 2187.40 would open the door for the SPX to move down to at least the 2050 area.
Mark