Finally Capitulation.. Potential VERY BULLISH REVERSAL Day
In one of the wildest 24 hour trading periods,
that I have seen in many "moons,'
the stock market appears to have put in
an important bottom today
with the SPX Low of 2621.53
By doing that, the S+P has put in a potential
a HIGHER Monthly Bottom in December,
than October's SPX 2603.54 LOW.
The rally began to legitimize itself,
late this afternoon, on a breakout
back above SPX 2670 a very important support,
on a Wall Street Journal report that the FED
may take a "WAIT and SEE" APPROACH" to raising interest rates further,
...thus immediately calling into question whether they will in fact
they will raise rates again at their Dec 19 Meeting,
which the street had priced into the market
with almost COMPLETE CERTAINTY was a given
as to not be bullied by political or market pressures to do otherwise.
Today's trading, filling the daily downside gap almost completely,
this afternoon was a very important OUTSIDE trading day,
trading below the range of the last 5 days in November
when a bottom was put in at 2632.
Today we broke below 2632 Double Bottom Low
cleaned out 10 points of HEAVY DUTY STOPS,
before REVERSING back to the outside above 2632,
and then it was off to the races.
5 minute RSI, which I use all day long,
to quantify important short term trend changes,
CONFIRMED this rally today, as the low in 5 minute RSI,
was found at today's OPEN.
This was a capitulation in the market today.
There is no other way to read it.
The Bulls finally made there presence KNOWN,
that they were again a force to be reckoned with,
after being in hibernation for a what seemed like forever.
As long as the S+P stays above today's low of 2621,53
I would view today as a meaningful test,
and a IMPORTANT REACTION LOW..on the CHART.
Bottom Line : Important Update
I am now NEUTRAL on the S+P 500
until such time that further quantified evidence presents itself.to me.
I am NOT BULLISH, BUT I AM NOT BEARISH EITHER,
as of the 12/6/18 Close.
RESISTANCE IS KNOWN at 2800, SUPPORT IS NOW KNOWN at 2621
SPX Last 2995.95 12/6/18
PS.
And one final thing, those of you who are looking at
Death Crosses should recognize one important point.
That is a lagging confirmation indicator,
often found at BOTTOMS, in MAJOR TURNING POINTS in the market.
The market has already priced in all of that in !
While you might be looking at a Death Cross
in the S+P as confirming Bearish evidence of trend,
the market could be forming the "potion",
for an immediate return to 2800 ..soon.
THE_UNWIND
12/6/18
NEW YORK
that I have seen in many "moons,'
the stock market appears to have put in
an important bottom today
with the SPX Low of 2621.53
By doing that, the S+P has put in a potential
a HIGHER Monthly Bottom in December,
than October's SPX 2603.54 LOW.
The rally began to legitimize itself,
late this afternoon, on a breakout
back above SPX 2670 a very important support,
on a Wall Street Journal report that the FED
may take a "WAIT and SEE" APPROACH" to raising interest rates further,
...thus immediately calling into question whether they will in fact
they will raise rates again at their Dec 19 Meeting,
which the street had priced into the market
with almost COMPLETE CERTAINTY was a given
as to not be bullied by political or market pressures to do otherwise.
Today's trading, filling the daily downside gap almost completely,
this afternoon was a very important OUTSIDE trading day,
trading below the range of the last 5 days in November
when a bottom was put in at 2632.
Today we broke below 2632 Double Bottom Low
cleaned out 10 points of HEAVY DUTY STOPS,
before REVERSING back to the outside above 2632,
and then it was off to the races.
5 minute RSI, which I use all day long,
to quantify important short term trend changes,
CONFIRMED this rally today, as the low in 5 minute RSI,
was found at today's OPEN.
This was a capitulation in the market today.
There is no other way to read it.
The Bulls finally made there presence KNOWN,
that they were again a force to be reckoned with,
after being in hibernation for a what seemed like forever.
As long as the S+P stays above today's low of 2621,53
I would view today as a meaningful test,
and a IMPORTANT REACTION LOW..on the CHART.
Bottom Line : Important Update
I am now NEUTRAL on the S+P 500
until such time that further quantified evidence presents itself.to me.
I am NOT BULLISH, BUT I AM NOT BEARISH EITHER,
as of the 12/6/18 Close.
RESISTANCE IS KNOWN at 2800, SUPPORT IS NOW KNOWN at 2621
SPX Last 2995.95 12/6/18
PS.
And one final thing, those of you who are looking at
Death Crosses should recognize one important point.
That is a lagging confirmation indicator,
often found at BOTTOMS, in MAJOR TURNING POINTS in the market.
The market has already priced in all of that in !
While you might be looking at a Death Cross
in the S+P as confirming Bearish evidence of trend,
the market could be forming the "potion",
for an immediate return to 2800 ..soon.
THE_UNWIND
12/6/18
NEW YORK
SPX Last was.. 2695.95.. on 12/6/18