Market Update

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Take a peek at the range envelope on the monthly bar chart above (shown as dashed gold —— lines)…

For only the third time since 2009–the S&P 500 Futures options have touched the bottom rail of that very-long-term channel, which is currently at 2546.75.

After the last two touches (in October of 2011 and February 2016) we had the start of a new leg higher and those were perfect entries.  So, obviously, this is a pretty big deal right here.  Bulls desperately want to see that major support hold… bears, on the other hand, would be quite excited to see it fail.

 

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The Weekly Bar Paradigm is also being tested.  The last higher 4-bar pivot low was at 2607.  We would need to see an eventual rally that crosses back above that line to keep the stop sweep/reversal streak going.

 

 

 

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The daily bar range chart above shows the bounce from very long term range support at 2546.75 and the gap fill at 2536.50.

There is a significant band of resistance just above this area (multiple solid ____ red lines) between 2576 and 2630.  It is going to take quite a push to get through all that–so we’ll see shortly which side the pros are on.

In addition, we have the FOMC announcement tomorrow at 2PM followed by end-of-year Options Expiration on 21-Dec.  So, lots going on right here!

There is still no significant Bottom Spotter activity–so we may yet have another test of the low ahead at some point.  Let’s see how it goes here at this resistance band starting at 2576 and then next at 2607 resistance, if price gets there.

The key line in play for the Weekly Bar Paradigm is 2607, and FOMC and OpEx are both huge events–so head’s up right here!

…my .02

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