Morning Notes 07/30/19-Gary Dean
Trading Environment-Short Term: Current Environment-Bearish
Hi Everyone,
Futures are down this morning and the bearish wedge was triggered. The target for the pattern is right around the 2985-ish, which also matches up with the 23% retracement line. It is already trading below the 200 dma on the 60 minute charts and that is giving the target line more credibility here. But there is support at the 2998 lows, so that is what the bears must bust through first to see a reaction trade down to the 2985 level. If we see buyers step in at the 2998, I would want to see the bears defend 3009/2019 to show they mean business as far as trying for the downside target.
For the SPX, the "gap omen" from Friday looks like it will be closed at the open, but there will also be 2 open gaps above, which most likely will get closed before any meaningful drop hits-if history is our guide. 2990-2985 is the pattern target for the SPX bearish wedge pattern and I believe we could see that sooner rather than later. If we do see buyers step in at that support zone and the bears can hold down any rally attempt below 3020, we could be making the right shoulder of a bearish head/shoulders pattern. For now, lets see if the bears can get to the pattern target between 2990/2985 and worry about future patterns later.
Today range for the spx 3014 high and 3007 low. (gap numbers) A break of 3014 the SPX should try for the spx should try for 3019/3025 A push below 3007 we could see 2996/2988. G-
SPX CASH 60 minute Technicals
Stochastics: Overbought
Divergences- Bearish Divergences
Resistance Levels: R1-3014 R2-3019 R3 3025
Support Levels: S1-3007 S2-2996 S3 2988
Trending Pivots: Lower
Trading Environment-Short Term: Current Environment-Bearish
Hi Everyone,
Futures are down this morning and the bearish wedge was triggered. The target for the pattern is right around the 2985-ish, which also matches up with the 23% retracement line. It is already trading below the 200 dma on the 60 minute charts and that is giving the target line more credibility here. But there is support at the 2998 lows, so that is what the bears must bust through first to see a reaction trade down to the 2985 level. If we see buyers step in at the 2998, I would want to see the bears defend 3009/2019 to show they mean business as far as trying for the downside target.
For the SPX, the "gap omen" from Friday looks like it will be closed at the open, but there will also be 2 open gaps above, which most likely will get closed before any meaningful drop hits-if history is our guide. 2990-2985 is the pattern target for the SPX bearish wedge pattern and I believe we could see that sooner rather than later. If we do see buyers step in at that support zone and the bears can hold down any rally attempt below 3020, we could be making the right shoulder of a bearish head/shoulders pattern. For now, lets see if the bears can get to the pattern target between 2990/2985 and worry about future patterns later.
Today range for the spx 3014 high and 3007 low. (gap numbers) A break of 3014 the SPX should try for the spx should try for 3019/3025 A push below 3007 we could see 2996/2988. G-
SPX CASH 60 minute Technicals
Stochastics: Overbought
Divergences- Bearish Divergences
Resistance Levels: R1-3014 R2-3019 R3 3025
Support Levels: S1-3007 S2-2996 S3 2988
Trending Pivots: Lower