the MONTH of December 2018 near 2800
a nearly 40 point GAP to the UPSIDE over November's Close.
That is a POWERFUL UP move that should give shorts PAUSE,
about immediately going into the marketplace to short.
A simple rational explanation.
this comes from my own PROPRIETARY
"Size of the Gap Extension Move".
Simply Measuring the size of the GAP
from the Close in November to the Open of trading in December..
At the moment, that Gap appears to be around 40 points,
based on trading overnight.
Taking the Opening Price if confirmed near 2800
and simply adding 40 points to the Open.
targets an" initial" upside potential move to... 2840.
Also if you see the enclosed chart
the almost perfectly rounded bottom distance
between the 2630 low and 2760 measured at 130 points.
Adding 130 points to the 2760 top of the pattern
equates to a yet another potential extension move up to.. 2890
Time has been pushed out,
as one of the traders here on tradingview has commented to me.
SHORTS should seriously consider
for either/or both of those upside targets 2840-2890 to be met,
before aggressively shorting the S+P.
As many of you know,
who have been reading my commentary on tradingview.com,
I turned on the S=P right at the all time high of 2940 in late September
yet recently...TURNED NEUTRAL on the market
on the break back above 2670, and then last weeks break above 2753.
I view this as a BEAR MARKET RALLY !
I REMAIN on the MARKET LONG TERM.
I will NOT change my opinion UNTIL/IF
the S+P 500 were to go on and make new all time highs above 2940.
This upside gap in price to begin December
will eventually have to be filled to the downside.
Bear market rallies are inherently dangerous for both bulls and the bears.
Keep that in mind in position sizing your trades,
as upside/downside REVERSALS
are often BOTH QUICK,and VIOLENT in NATURE
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