It is possible that we break lower out of this flag and cut deeper for wave B, but I'm thinking its more likely that we maybe have a false break lower and then spend some time traveling back to the top of the thing and thats how they'll get this patter to last past Thanksgiving before breaking north.
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Key Levels
Upside -- 1239, 1253, 1271, 1290
Downside -- 1236, 1226, 1220, 1204 (all pretty significat levels of support)
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SPX Daily;
We stopped right at the bottom of the flag. We are also 13 points above the 100dma and 35 points above the 50dma.
Also noticed that just bouncing around and some time has allowed the MACD and stochs to correct some. The MACD down from an extreme level of 21 back to 12 and the Stochs off of overbought and back to a neutral state. This is the room the market needs to launch for that final rally wave.
We can break down out of this flag, but it would likely just be a deeper cut for wave B. It would take a close below 1204 to make me think otherwise.
This is a very headline driven environment, but it would take more than the daily dribble we are accustomed too lately to actually change the current structure of the market. We would need some kind of real concrete news that was truly a major decision rather than all the blubbery crud that comes out every other hour.
GL
CJ
2 comments:
Is this the Impact of European markets ?
The real answer to that question is long.. i will do a special long segment on Sunday night addressing that question.
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