The_Unwind

Bulls Need To Break Out Above 2670 ..Or They Remain Trapped

SPCFD:SPX   S&P 500 Index
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343 8
The longer price stays below a significant Resistance level ,
the more FORMIDABLE that RESISTANCE BECOMES.

When important support at 2670, was breached in early December,
that breakdown caused an almost immediate drop to 2640 Support,
and then from there,the S+P has this week broke intermediate support
at 2603, with the spike low to 2583,before reversing to the upside,
in what could turn out to be a very significant reversal.

With a bullish Double Bottom at 2621 now in place,
once again the S+P is rallying back towards 2670.

This is an important rally to consider.

If price breaks above and closes decisively above this weeks
high at 2674,then the S+P will have the first important
and perhaps SIGNIFICANT evidence of a price bottom at 2600.

Please note this rally comes with a double edged sword.

Should this rally once again FAIL at the 2670 level,
then most assuredly the Bears will immediately come rushing back in,
with the current pattern suggesting this rally
may be the bulls last immediate attempt,to break out above 2670

Confirming evidence can be seen in the turn down
in 15 Min RSI , on 12/11/18 rally failure to 2670 !

2670 is THE Short/Intermediate Resistance Area
that the BULLS MUST OVERCOME.

Failure to do so,would continue to suggest
that the bulls remain TRAPPED
below 2670, in any rally attempt.

SPX Last 2636.78

THE_UNWIND
12/12/18 825AM
NEW YORK





Comments

interesting! I'm a hardcore McClellan momentum analyst.
I can see you have nuance to your system.
I think there's Tension between the McClellan Osc's Velocity and the NYSE Adv-Dec and tomorrow starts out bearish then flips bullish and starts the next decent 1-3 day leg up.

I'll be watching to to see weak $ADD at the open that grows all day. I'll be a buyer.

I believe that i'm saying I think bulls will be testing that 2670.00 and breaking it tomorrow!

-- Great post ---

-BaconTrading
Reply
The_Unwind BaconTrading
@BaconTrading,

Thanks much. I like the idea of your system, especially
McClellan Osc. Velocity NYSE AD Line .
Will have to catch up with you.
Reply
NO Santa rally this year!
Reply
One of the most bullish weeks of the year starts next week :) Breakout and short squeeze is coming...end of this week or beginning of next week. :)
Reply
The_Unwind David_Scott
@David_Scott,

Thanks for the heads up, Sir.
Reply
BigJayden06 David_Scott
@David_Scott, What makes next week the most bullish week?
Reply
David_Scott BigJayden06
@BigJayden06, The last two weeks of December are almost always bullish for markets. Many indexes in the US, Europe, and Asia are currently oversold even on weekly levels now. Headlines have all been terrible. Heavy selling has been going on for 2 months now. Much of tech has been knocked down 25%-40% off it's ATH. Neither the FED nor Trump nor China want the market crashing over Christmas. So expect headlines to improve some. Expect the FED to not take a hawkish stance. So balance of probability says bull bias.
Reply
BigJayden06 David_Scott
@David_Scott, When considering all of that, your analysis makes a lot of sense. I appreciate your responding.
Reply
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