Market Overview

SPX - Down to the LTL

As predicted, once the level 1325  was broken to the downside,  the target became the zone 1312 - 1310.

For a short time it looked like that level would hold.  The close at 1304.86 puts the price, by my placement of the lower trend line of the Rising Channel,  right at the LTL.

There is still a small amount of downside available to allow for an overshot of the LTL . However the price decline would have to stop and reverse by 1293 for the pattern I am using to remain in play.

Should the price not remain above 1293, then the Index may head down towards the lower 1200's.

The Daily Birds [ CCI 14 and CCI 50 ]  are well below the -100 level and are not, at this time, showing any sign of reversing their negativity . Also the EMA 5 / WMA 13 is still in a SELL mode.

However on the 60 Minute Chart , the Birds, while still below -100 have been forming higher lows while the price was forming lower Lows. This indicates that the reversal may be at hand.

Sorry no charts until I get some bugs straightened out.

The following article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.

Posted-In: major indexes SPXTopics Markets Trading Ideas General

 

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