Morning Notes 04/04/19 Sentiment Timing
Trading Environment-Short Term: Current Environment-Neutral/Bearish (97% Bullish Marked Short Term Top Range)
Hi Everyone,
Futures are flat this morning as the dip buyers are focused on holding above the 50 dma on the hourly chart (/es) They have zero wiggle room and I think we could see a break below, but that leave a couple of options for direction on the table. The first option (bearish) would be a reaction trade down to the 2849-ish are (/es currently at 2879) The other option (bullish) would be that the bulls step in near the 2866-ish area and try for another rally high. That target would be the top of the wedge, which looks to be around the 2895/2900 area. Whichever way they decide to go today, I am looking at it as a topping phase as we get closer to the short term top date.
The bearish wedge is still in play and has a target of 2765-2722 if played out to completion. But the bears have a lot of work to do before we see a move to the downside go viral. 2860/2852 is the first support zone they need to push through. If we see that, then a reaction trade down to 2830 should be on deck. The bulls need to get above 2885 to stretch this move to 2895/2900. Again, even if we see more upside, it doesn't look sustainable with the open gap foundation they have left behind.
The range SPX range for today is 2880 high and 2870 low. A break of 2880 the spx should try for 2886/2896. A push below 2870 we could see 2859/2852. G
SPX CASH 60 minute technicals
Stochastics: Overbought
Divergences- Bearish Divergences
Resistance Levels: R1-2880 R2-2886 R3 2896
Support Levels: S1-2870 S2-2859 S3 2852
Trending Pivots: Neutral
Trading Environment-Short Term: Current Environment-Neutral/Bearish (97% Bullish Marked Short Term Top Range)
Hi Everyone,
Futures are flat this morning as the dip buyers are focused on holding above the 50 dma on the hourly chart (/es) They have zero wiggle room and I think we could see a break below, but that leave a couple of options for direction on the table. The first option (bearish) would be a reaction trade down to the 2849-ish are (/es currently at 2879) The other option (bullish) would be that the bulls step in near the 2866-ish area and try for another rally high. That target would be the top of the wedge, which looks to be around the 2895/2900 area. Whichever way they decide to go today, I am looking at it as a topping phase as we get closer to the short term top date.
The bearish wedge is still in play and has a target of 2765-2722 if played out to completion. But the bears have a lot of work to do before we see a move to the downside go viral. 2860/2852 is the first support zone they need to push through. If we see that, then a reaction trade down to 2830 should be on deck. The bulls need to get above 2885 to stretch this move to 2895/2900. Again, even if we see more upside, it doesn't look sustainable with the open gap foundation they have left behind.
The range SPX range for today is 2880 high and 2870 low. A break of 2880 the spx should try for 2886/2896. A push below 2870 we could see 2859/2852. G
SPX CASH 60 minute technicals
Stochastics: Overbought
Divergences- Bearish Divergences
Resistance Levels: R1-2880 R2-2886 R3 2896
Support Levels: S1-2870 S2-2859 S3 2852
Trending Pivots: Neutral