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