The weekly TA action of spx says the market is going to go up, note the following:
1. T1 area was a test to answer the question, "Should we take the market to 100wk MA?", this was a 4 week test, the answer was NO.
2. Once T1 was answered, the market went to T2 quickly, to answer the questions, "Should we take the market above the 20wk and 50wk MA or should we dump the stock and then dive to the 100wk MA?"
3. Step 2 above hasn't been answered yet, however the trading action, seen on the daily chart along with volume (the daily chart isn't shown), looks real good in the sense that the trading action has been between the 100d, 50d and 20d MA's, i.e. all these MA's are currently acting as strong support........in the manner that one would think a strong MA support should act like.
Given the above, I would say that the market will move up, for spx the next test will be if 4818.62 will be broken to the upside. If 4818.62 is broken we will go up viciously regardless of the crumbling fundamentals of the market, at least to the next market test point. If 4818.62 isn't broken, then the market will dive (likely within 1 week) to test out the 100wk MA to see if it holds.
1. T1 area was a test to answer the question, "Should we take the market to 100wk MA?", this was a 4 week test, the answer was NO.
2. Once T1 was answered, the market went to T2 quickly, to answer the questions, "Should we take the market above the 20wk and 50wk MA or should we dump the stock and then dive to the 100wk MA?"
3. Step 2 above hasn't been answered yet, however the trading action, seen on the daily chart along with volume (the daily chart isn't shown), looks real good in the sense that the trading action has been between the 100d, 50d and 20d MA's, i.e. all these MA's are currently acting as strong support........in the manner that one would think a strong MA support should act like.
Given the above, I would say that the market will move up, for spx the next test will be if 4818.62 will be broken to the upside. If 4818.62 is broken we will go up viciously regardless of the crumbling fundamentals of the market, at least to the next market test point. If 4818.62 isn't broken, then the market will dive (likely within 1 week) to test out the 100wk MA to see if it holds.
Comment:
BTW, the volume correlates with the analysis above, in terms of testing. What you want to see is when the market goes down that the volume increases with a relative small movement in downward price action, in general we are seeing that.