The current range envelopes are highlighted on the screen capture above from Stops and Targets. The dark red colored highs show where the counter-trend sell was generated at 2878.50… and the green-colored 2818.50 on the short-term range envelope low shows where a short-term support test is currently occurring. Note that the ↑ range arrows on the intermediate and long term are both showing a trending bull market in those timeframes. However, the ↔ sideways arrow indicates that the short-term has changed from trending to rangebound. If we get a breakdown below support then the short-term trend will change to bearish.
click image to enlarge
Take a look at the chart just above. Do you see the pattern?
Since the last touch of the intermediate range bottom (dashed green line) back in August of last year… every touch of the short-term range bottom (dotted green line) has been bought. So you know what to do if it holds yet again. If, on the other hand, we get a break through the bottom of the range that does not recover…then something different is going on.
The FISA memo has been voted on and will be released soon. Last night’s State of The Union speech was very well received (75% approval rating from a Fake News sponsored poll, no less). Joe Kennedy III’s big debut…not so much (Ask not what your country can ‘drool’ for you… (LOL). Today we get the FOMC rate proclamation at 2 PM New York time.
As promised, this week has not disappointed for excitement thus far… and we still have 2.5 days to go. Let’s keep an eye on yesterday’s low at 2818.50 as a benchmark going forward. Price action remains bullish above–but would flip the short-term trend bearish on a cross below.
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