Imagine if the told you that just prior to armageddon
they were going to open up the back of the believer's church
so that all the late comers, who thought they had missed the party
would have a chance to enter, to gain some of the dreaded spoils, before they vanished for good.
It was not too late,for the believers to come in for the last piece of the pie.
In ...
1 Hour Chart on the S+P 500 shows a clear rising wedge technical formation
in place on the chart with the potential for a upside breakout above 2600 a possibility.
There are some who now believe the bear market is over.
My own thoughts is that the bull trap is waiting to be sprung.
An upside breakout above 2600 would give much needed
confidence and confirmation ...
A quick update to my last S&P 500 idea where I called for a breakout rally to 2620 before getting sold off (see it here). The chart above remains the same. I think we are seeing that very false breakout on a bullish wedge at 2600 on the hourly charts. There is a chance the bulls can take it to 2620 before selling it off, but that is less likely.
Be prepared ...
Toady the SPX came a few points below Fib resistance at 2615.
Intra day wave pattern is bullish and looks like it push above 2615 to 2617, If so next resistance is at 2626 this is .618 retrace of the drop from SPX 2800.
Above that is .50 retrace of the entire Oct to Dec decline. SPX 2642.
Daily Stochastic is overbought - this indicator can stay overbought ...
Everyone is getting bullish on stocks, I'm out for now, probably take a short here soon. The SPX is looking good, no momentum to the downside, but this area of resistance and the Kijun-Sen is going to be real hard to get through and I don't see it happening on the first try at least. Mostly like it will drop and start to gain steam or it could go sideways but ...
Symbol: SPX500
Prediction : Short
Daily : We have a nice zone of resistance, with few rejection candles.
4H: The price can have a last push then go bearish.
1H: We have a channel, the best time to take a sell is when we break this channel.
Market may come into bear trend (market sell-off) and go down again a good place to make a market order would be at 2525
Stop loss (S/L) set at 2491 a 1.39% loss
Take profit (T/P) set at 2633 a 4.35% gain
Execute with your own discretion
An Elliott five wave pattern could be complete on 1/15/16.
The length of supposed wave 1 added to the supposed wave 2 bottom targets in the 2617 area.
The longest part of the possible Horizontal Triangle wave 4 added to the low of sub wave "e" targets 2615,
Mark
Last two MACD fades lined up with the vertical lines - strong sell signal as weakening bull trend. Testing resistance in what looks like a bear flag on declining volume.
In my last article,
I suggested S+P 500 would break down from 2600 resistance
based on the circular dome pattern that I drew previously in red.
If you were paying attention,that is exactly what happened today.
Interestingly enough, do note
the same type pattern has showed it's hand in today's trading,. as well.
Reference the drawn line in red on today's 15 ...
Standard and Poor's 500 Index is a capitalization-weighted index of 500 stocks. The index is designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries. The index was developed with a base level of 10 for the 1941-43 base period.
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SPX
