Morning Notes 07/29/19-Gary
Trading Environment-Short Term: Current Environment-Bearish
Hi Everyone,
Futures are pretty flat this morning as we head into "how much will the Fed cut rates" week. There is yet another bearish wedge pattern now on the /es. It is smaller than the pattern I have been showing on the daily SPX charts, but it is a clear pattern with target. This pattern does allow for an over shoot of the top of the wedge, which is currently right around /es 3035-ish. The target for this set up is around 2989, depending on when it heads down there. The longer it takes, the lower the target goes. Bearish divergences, internals and sentiment are supporting this pattern as well.
There is the same pattern on the spx 15 minute charts that is pointing to a target near the 2985 as well. But price is already at the top of the wedge, so any further strength would be the over-shoot I just mentioned above. I still believe we could see 3033-3040, which is the top of the bear flag channel as well as the larger daily bearish wedge. But we need to see the bears push the spx below 3015 to even look at a short term top. The more important support level the bears need to push through remain at 2996. Until then, the bulls will hang around.
Today range for the spx 3027 high and 3017 low. A break of 3027 the SPX should try for the spx should try for 3030/3035 A push below 3017 we could see 3012/3006. G-
SPX CASH 60 minute Technicals
Stochastics: Overbought
Divergences- Bearish Divergences
Resistance Levels: R1-3027 R2-3030 R3 3035
Support Levels: S1-3017 S2-3012 S3 3006
Trending Pivots: Higher
Trading Environment-Short Term: Current Environment-Bearish
Hi Everyone,
Futures are pretty flat this morning as we head into "how much will the Fed cut rates" week. There is yet another bearish wedge pattern now on the /es. It is smaller than the pattern I have been showing on the daily SPX charts, but it is a clear pattern with target. This pattern does allow for an over shoot of the top of the wedge, which is currently right around /es 3035-ish. The target for this set up is around 2989, depending on when it heads down there. The longer it takes, the lower the target goes. Bearish divergences, internals and sentiment are supporting this pattern as well.
There is the same pattern on the spx 15 minute charts that is pointing to a target near the 2985 as well. But price is already at the top of the wedge, so any further strength would be the over-shoot I just mentioned above. I still believe we could see 3033-3040, which is the top of the bear flag channel as well as the larger daily bearish wedge. But we need to see the bears push the spx below 3015 to even look at a short term top. The more important support level the bears need to push through remain at 2996. Until then, the bulls will hang around.
Today range for the spx 3027 high and 3017 low. A break of 3027 the SPX should try for the spx should try for 3030/3035 A push below 3017 we could see 3012/3006. G-
SPX CASH 60 minute Technicals
Stochastics: Overbought
Divergences- Bearish Divergences
Resistance Levels: R1-3027 R2-3030 R3 3035
Support Levels: S1-3017 S2-3012 S3 3006
Trending Pivots: Higher