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