S&P500 – week of November 12 – Explanation! Weekly Bullish Reversal to watch stands at 2804 – Weekly Bearish reversal stand at 2610!
Bullish reversals: If the market should close above the reversal point, then the downtrend will be "reversed" into a bullish or increasing trend. The first reversal point indicates that a move to the second reversal is likely. The second reversal point signifies a move to the third point is probable and so on.
Bearish reversal: If the market should close below the reversal point, then the uptrend will be "reversed" into a bearish or declining trend.
Experienced traders: could use reversal points for the opposite of their intended use. Example: A trader could place an order to buy against a bearish reversal with a protective stop just below.
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Wed. Nov. 14, 2018: S&P 500 Cash Index closed today at 2701. Only a close above 2746 would imply a retest of the previous high. Testing critical support.