Market Update

 

 

click image to enlarge

 

The chart above isolates the Intermediate timeframe from Stops and Targets.  That is the timeframe the pros have been using to drive the market higher since the major pullback bottom in February.

I have highlighted the three major Stops and Targets BUY signals on the chart directly above.  Those were…

  1. Bottom Spotter signal on February 6th (up 13% since!)
  2. Intermediate range bottom counter-trend buy signal (created when a downside range breakout is reversed to the upside) on April 3rd
  3. Last stop/reverse line buy signal on July 5th

Note that the S&P 500 Futures have been trending ( symbol next to intermediate range) since the range bottom counter-trend BUY signal and that no pullback has touched the bottom of the intermediate channel (shown as dashed green lines on the chart above) since.

So, two simple takeaways…

  1. Watch the Intermediate range envelope bottom (currently at 2791).  The current bullish stair step pattern in place since April 3rd will only end when that line is eventually crossed to the downside.
  2. The next target higher is the top of the January 29 to February takedown range (2537.75 to 2887.25).  There are likely tons of bearish buy-to-cover stops resting just above that line.

…my .02

 

 

 

 

 

Market Update


 

 

 

click image to enlarge

 

Head’s up here…

The S&P 500 Futures are testing the bottom of the range envelope.  We see the first signs of bearish range expansion here underneath 2798.25 and that is the line currently in play.  It is possible that we could see a bounce once the short-term stops are cleared under 2793 but in recent times a breach of the short-term range envelope more often than not is a warning of a deeper pullback coming ahead.

As you can see in the daily bar range chart above–there isn’t any support between the current price and 2717.75, so the market is definitely vulnerable here under 2798.25.

The key indicator to watch at Stops and Targets is the short-term range envelope low.  Bears are good to go here until we get a counter-trend buy signal.  Once that happens then all bearish bets are off.

 

click image to enlarge

 

The chart just above shows hourly bars for day traders.  It’s all about 2798.25 today.  Price action is bearish below but reverses to bullish above.  We are about to test that resistance from below and we’ll see how it goes.  There is a big support gap below down to 2748, so the pros will either protect here–or we can expect some downside underneath if 2798.25 becomes new resistance.

…my .02