traded down today, in what could be a sign that the uptrend on the hourly chart is ending. We have completed 9 waves in the current uptrend (based on SPXUSD
) -- anything beyond 5 waves raises the probability of the trend reversing. Also, momentum has come down significantly, as signaled by a declining MACD
. Note, too, the existence of nearby resistance at a round number, namely the 2800 level.
While mindful that the trend remains up on the hourly chart, I'll be looking for opportunities to short on rallies.