Added: A second chart at the close showing price is now back above my Blue IC Uptrend. So this is either an early warning or an FBO. A clear mini wedge has now formed. A close above my Red line should be bullish and a close back below my Blue IC Uptrend very likely bearish. I grabbed a SSO position near mid-day as the rally appeared to have legs but we shall see.
The SPX has broken my Blue Intermediate Cycle (IC) uptrend line this morning which is an early warning sign that the SPX IC may have topped at 2+ months.
We need to watch this closely. Based on Time, I would expect the next Intermediate Cycle Low (ICL) in the April timeframe.
Previous SPX Post:
I have the SPX on day 6 of a new Trading Cycle. The last TC Low or DCL allows me to now draw my longer Blue 5-6 month Intermediate Cycle Uptrend line. My fist chart shows the SPX wedging to a decision point and the tightness of the Bollinger Bands is signaling a big move is very likely coming.
My second chart shows several blue vertical lines that pinpoint the periods over the past 2 years were we also saw tightness in the B-Bands. Not saying we will see another big drop here but the SPX either needs to break above my red resistance because a close below my Blue IC Uptrend would likely signal the longer Intermediate Cycle has topped.
I have the SPX on day 2 of a new Trading Cycle after finding a very mild TC Low on day 38. We are also nearing the 2 month mark of the SPX’s longer 5-6 month Intermediate Cycle since the US Election. Based on the 5 month IC Low pattern … Continue reading →
The SPX lost the 10ema today on day 36. The SPX is now in the early part of my timing band to find a TC Low but the band average can last to 46 days or longer so we could see a couple more weeks of downside action. Previous SPX … Continue reading →
I have the SPX 35 and in the early part of my timing band to find a Trading Cycle Low. While the SPX has broken my TC Uptrend line, it found support at the 10ema. After bouncing off the 10ema on day 33 price is now testing my red TC … Continue reading →
The SPX has broken my short term Trading Cycle uptrend line out of the last 5 month Intermediate Cycle low near the US Election. This will very likely signal a move into the next Trading Cycle low over the next week or two. SPX Trading Cycles typically last 33-45 days, … Continue reading →