I don’t think the selling is over yet but a rebound is due soon. If SPX continues to go down, buy in 15% at 1,360 and 50% at 1,340. If SPX rebounds passing 1,387 decisively then the low is already in; buy in 50% and enjoy the ride up trend.
SPX touched the bottom band of Bollinger bands, a rebound is expected. It could be as high as 1,410 which is a sell opportunity. Probably it is the last chance to lock-in profits. If SPX continues to go down, buy in 15% at 1,387; 35% at 1,366 and all in at 1,340. Any interim rebound before 1,340 is to sell unless rebound is decisive.
We did have gap up but break out failed on fourth hour. Was it a double top that I see? A break down below 1,337 will confirm the pattern.
T2108 falling from 87.68 to 80.46 is confirming the contraction in buying!
My call for Feb 10 was perfect! Here is another call for tomorrow: bullish pennant is being formed. Watch for potential breakout!
It has been a week since my last update. In last update I stated that within 10 days a pull back of some kind would occur. Proof to support the potential pull back are shown below.
The bulls did not make a decisive high today. But they didn’t do a bad job holding the SPX to close in green. Tomorrow NPF will be a battle ground for the bulls and bears.
Bears’ ultimate weapon (T2108), shown below, is charging to 85.48 indicating in less than 10 days smart money will start to book profits.
Bulls have been resilient from bears attacks. If they can make a decisive new high breaking out the multiyear resistant line tomorrow, and Friday NFP report shows some improvement; I will join the bull camp to celebrate their resumption of strength. If the two conditions are not met, I believe markets will roll over starting next week.