Upside -- 1344, 1352, 1360-1370
Downside -- 1337, 1324, 1317 and 1311
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Only one chart again for tonight, because I think it's all you need right now.
SPX Daily;
Still holding on to the top of the bollingers. We closed just above them, which is that 1337 downside key level.
NFLX had a pretty terrible report tonight, it's down about 11% AH. That's not going to help momo land, as they were trying to form a move upwards.
We are definitely in a big sideways triangle/flag. The obvious question is which way we ultimately break out of this pattern. It is a LARGE pattern, so whichever way the break is, I would NOT fight it. You have to be careful though, because as we get closer, it is very possible we have at least 1 false break, so don't go balls deep the second it breaks.
To me, the large triangle is a much more likely pattern than the big H&S which is getting sloppier by the day, but still there.
On to the meaning of my title.. More perilous than it looks.
In yellow on the above chart, I have marked placement of the 50dma and 200dma for the S&P 3 months ago and today.
I want you to note how much the spread between them has collapsed recently. We were working with well over 100 points 3 months ago, we are now working with less than 30.
That's important. A death cross, which is the 50 sliding under the 200, in the S&P would be bad, as it would join the death cross in the XLF and SOX.
If the S&P slides here any decent amount below 1311 and doesn't immediately recover, we will have a death cross possibility. It's only 28 points folks. If the market continues this sideways consolidation, it will be reduced to almost zero points in about 30 days. Or if the market were to quickly fall to the 1270 range, we would have a problem.
Just something to keep an eye on, as it's much closer to being possible than it was just 3 short months ago. And without a breakout higher, will be even closer to reality by the end of August.
And.. back to blah blah blah from our piece of crap "leaders"
GL
CJ
5 comments:
playing break upwards,,,earnings have been outstanding,,,,,debt ceiling increase imo not fully priced in,,,,,mo-mo in bulls favor,,,new highs coming,,,,will pounce on 10pt pullbacks up to new highs,,,,,
mkt needs to get debt crap out of the way,,,it's getting raised so just be done with it,,,,,definitely new highs are in store based on today's action,,,,,snp getting the coily feeling,,,readying itself for moon???? how bout aapl's???? up 9 out of 10,,,,
lot's of zero's on the horizon,,,,,dow 13,000,,,,nazzy 3,000,,,and snp's 1400,,,,,,
second straight week we bottomed on monday,,,,,
amzn (new ath)mooning in a/h,,,,heading towards the "300 Club" ,,, ,should help the mo-mo's (as if they needed any),,,,,,nflx nice snap back after sluggish start,,,,should tag 300 again soon,,,,,aapl prolly up again tomorrow (another ath),,,,,tech bringing us to new highs,,,,mondays low held,,,think we getting close to letting houston know we're ready for lift-off,,,,
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