SP500 Elects Short Term Sell Signal: The Wider the Base, the Greater the Space Below

*Back in the saddle on Monday night after a computer crash Friday night. Apologize for the disruption. There is a popular saying when it comes to point and figure charting “The wider the base, the higher the space.” But in cases where the price base is at a high rather than a low, one can not say the “higher the space.” The 50x3 SP500 chart below illustrates a triple bottom sell signal this evening on the failure of 1218.50 or 1218 rounded after setting a two-day Candlestick reversal pattern called a Harami. The failure of 1218 is the initial confirmation of the short term reversal signal. The initial confirmation will be invalidated by any trade above the preceding column of x's before the sell signal column of o's (or 1221).

It is always best to confirm the PF chart (imo) with the daily and intraday chart models. In this case, what I am looking for are support targets. The bull trend on the 240 minute chart is clearly found at the active green moving average sloping into 1185. That is pretty much the extended short term target. The PF chart above shows further sell signals will be elected at 1215 and 1212. Initial supports remain at 1204 and 1196-1198 on the PF chart above. But a spike below all of this could carry the SP500 back to the green average shown below.