1 Hour Chart on the S+P 500 shows a clear rising wedge technical formation
in place on the chart with the potential for a upside breakout above 2600 a possibility.
There are some who now believe the bear market is over.
My own thoughts is that the bull trap is waiting to be sprung.
An upside breakout above 2600 would give much needed
confidence and confirmation for many bulls to substantiate coming back into the market.
However,... should price breakout above 2600,,
one should immediately look to find clear bearish divergences against price,
as the potential exists for rampant bullishness to then enter the market
on that breakout, media/industry talking heads chatter included,
where the sound on the television needs be immediately turned off.
Risk/Reward opportunity would be HIGH at that point for a Bearish "Reversal Top",
slightly above 2600, that brings in the final capitulation needed to complete the top
from the 2346 low on Dec.26.2018.
A "Terminal" Reversal Breakout " would then clear the way,
for a potential panicked new downside market event and a sharp drop back towards prices unknown.., BELOW
SPX Last 2582.61
THE_UNWIND
1/15/19
NEW YORK
in place on the chart with the potential for a upside breakout above 2600 a possibility.
There are some who now believe the bear market is over.
My own thoughts is that the bull trap is waiting to be sprung.
An upside breakout above 2600 would give much needed
confidence and confirmation for many bulls to substantiate coming back into the market.
However,... should price breakout above 2600,,
one should immediately look to find clear bearish divergences against price,
as the potential exists for rampant bullishness to then enter the market
on that breakout, media/industry talking heads chatter included,
where the sound on the television needs be immediately turned off.
Risk/Reward opportunity would be HIGH at that point for a Bearish "Reversal Top",
slightly above 2600, that brings in the final capitulation needed to complete the top
from the 2346 low on Dec.26.2018.
A "Terminal" Reversal Breakout " would then clear the way,
for a potential panicked new downside market event and a sharp drop back towards prices unknown.., BELOW
SPX Last 2582.61
THE_UNWIND
1/15/19
NEW YORK
Front Month March 2019 S+P 500 Futures ESH
Overnight High for 1/15/19
at 2600.25, one tick above 2600.
Will that be enough to satisfy a reversal ?
One should pay very close attention to Real Trading Hours RTH,
for potential confirmation.
THE_UNWIND
1/15/19 845 AM
NEW YORK