The 60 minute SPX chart gives a different perspective to the bullish upside potential to the 2450-2460 area on 5/10/17 or 5/11/17.
Since March 1, 2017 top at 2401 the pattern is a cup and handle - a bullish formation.
Another way of looking at the situation is to understand where the bears stop loss orders could be placed.
Here we have a tight double top at SPX 2398 and 2401. If the stop loss orders are hit above 2398, which they have, this will move prices up to the next stop loss area of 2401.
If 2401 is breeched, then expect prices to move even high.
If this happens watch for a pull back to go long after initial move above 2401.
The size of the cup and handle implies at least a move up next week into the 2440 area possibly more.
This ties in with my Fibonacci analysis (see prior posts) for a move into the SPX 2450-2460 area.
The full moon on 5/10/17 could act as the other bookend to the bottom made at the 3/27/17 new moon.
Mark
Since March 1, 2017 top at 2401 the pattern is a cup and handle - a bullish formation.
Another way of looking at the situation is to understand where the bears stop loss orders could be placed.
Here we have a tight double top at SPX 2398 and 2401. If the stop loss orders are hit above 2398, which they have, this will move prices up to the next stop loss area of 2401.
If 2401 is breeched, then expect prices to move even high.
If this happens watch for a pull back to go long after initial move above 2401.
The size of the cup and handle implies at least a move up next week into the 2440 area possibly more.
This ties in with my Fibonacci analysis (see prior posts) for a move into the SPX 2450-2460 area.
The full moon on 5/10/17 could act as the other bookend to the bottom made at the 3/27/17 new moon.
Mark