But even with nothing in the headlines, we rejected the 200dma again. Pretty much the same as yesterday, except today we printed a little red DOJI candle, but still closed above yesterday.
The stochs are starting roll now.
I see the futures are up at the moment, but I dont believe it at all. A rollover is probably imminent here for the next move in this pattern.
Of course, barring the EU discovers a herd of euro shitting unicorns in the hills of Ireland.
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Key Levels
Upside -- 1264, 1270, 1300ish
Downside -- 1252, 1212, 1177, 1169, 1121
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SPX Daily;
Same chart as yesterday, but showing how we rejected the 200dma yet again. We are still hovering about the bollinger bands. If we cross back into those, there is no support for about 40 points.
The stochs are topping as well.
Another thing I added is what looks to be another important trendline at the moment that has us potentially forming a big wedge rather than a channel. If it were a wedge, its huge and the resulting move out of it would be very large. Its a somewhat neutral wedge with a slight lean towards a bearish wedge because of the steep rising bottom.
The potential wedge is still 100 points wide and would take about another month and a half to reach a point of forcing a resolution.
Again.. interesting timing.. plenty of time for a christmas rally and January is a popular time to kick off sell offs.
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One last interesting note.. (I can post charts showing this on Thursday)
1) We are just underneath the mid-bollingers on the Monthlies.. the same was the case in May 2008 just before the market dived.
2) We are smacking the top of the bollingers on the weeklies.. again, the same was the case in May 2008 just before the market dived.
A lot of very intersting similarties between the 2 tops and following moves. But we'll get into that deeper maybe as a christmas vacation special post.
GL
CJ
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