Market Update



click on image to enlarge


Just a quick update this morning…

In my last post I pointed out the next two major upside targets, 1) the open gap at 2794.75 and 2) the trove of bear stops sitting just above the top of the long-term range envelope at 2818.

  1. Yesterday the gap was filled at 2795.75 and we got some selling due to profit-taking there.  Traders know that gap fills are often reversal areas on the S&P 500 futures –so that is what happened yesterday, and likely has some fingers poised and waiting above the sell button.
  2. Today we have a bounce off the short-term stop/reverse line at 2773.25

If this bounce holds,  that could bode well for the pros to ultimately push up and into the treasure trove of bear stops above 2818.

So to summarize… it’s all good for bulls above yesterday’s low at 2764.25.  A failure of yesterday’s low, however, could bring in aggressive new selling.  A new push above yesterday’s high at 2798, on the other hand, and the big stop-run target above 2818 could be a lock.

…my .02








Market Update



click image to enlarge


Stops and Target’s Range Envelopes are great!  😎

In my last post I pointed out that a range breakout was likely coming.  Take a peek at the two images above and focus on what happened afterwards…

On 06-Feb there was a countertrend pullback alert at 2737.75.

On 08-Feb price pulled back from that signal to touch the bottom rail of the short-term range envelope.  See the green arrow () on the chart above and also the shaded yellow highlight on the Stops and Targets screen capture above the chart.  On that date, the short-term range envelope bottom rail price was then at 2685.50.  We had a pullback that poked just below to 2680.75 and then we got the bounce at the Stops and Targets short-term range envelope buy signal toward.  The next target higher at the time was the short and intermediate top rails at 2737.50.

As I type, price has achieved that initial target and now is breaking out above 2737.75.  No doubt, the pros are taking full advantage of bear’s buy-to-cover stops which were resting just above that line.

As I mentioned in my last post, the next major upside target now becomes the descending long-term (LT) range envelope top rail, which is currently at 2822.  Above that line sits the absolute mother lode of resting bear stops, which provides guaranteed buyers (as bears would be forced to cover massive short trades incurred below).

Just below the LT range envelope top rail is an open gap at 2794.75.    If this current push continues higher after the first level of bear stops are digested above 2737.75, then the open gap and LT top rail would undoubtedly be the next major upside targets.

Note that both the short-term and intermediate range envelopes have hooked higher into a bullish ‘V’ formation as new higher range tops are set and the bottom rail follows price higher (higher highs and higher lows).

The long-term range envelope is still rangebound with a bearish bias () and has yet to trend.  To do so would require the range envelope high to descend below the current long-term stop reverse line at 2782.75.

That all agrees with Stops and Target’s BULL 3 multitrend assessment shown in the top screen capture.

To keep the current configuration simple, I have shaded the two key numbers to watch on the Stops and Targets screen capture… bulls are good so long as price remains ABOVE the rising short-term range envelope bottom, which is currently at 2680.75.  The next target higher is the descending long-term range envelope top, which is currently at 2822.  Easy peasy.

The whole dynamic will change if/when price breaks under the rising short-term range bottom.  If/when that happens, the next major target lower would be the rising intermediate range envelope bottom rail, which is currently at 2567.25.  See how all of that works together?

…my .02