Hello folks! My last World Markets Update post during the weekend called for a short-term bullish breakout in asian and us markets - right on target!
For the SPX, we broke out of a major downtrendline around 1105, and hit an impulse high of 1123. Expecting consolidation ahead, and remaining short-term bullish unless, we break below 1090. For today, we may grind up at the open a bit, before moving lower towards 1107.
Minor support 1110. Good trendline support at 1107, followed by 1090 area.
Inverse Head & Shoulders ?
Notice the upsloping inverse H&S setting up with neckline where the 'B' label is, and the head at C. There was a small breakout, but whether it holds or not remains to be seen. An eventual breakout above would be short-term bullish with a target around 1150 - a retest of the highs!
It is not impossible, especially if the move down from 1150 was an A-B-C (the most obvious count).
All the best!
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2 comments:
I presume you have seen Caldero's count which has the drop from 1150 as a Major 1 and the subsequent rise from 1043 as a major abc which could retrace the full distance if my understanding is correct. Ho hum! Fun and games. Wish this would resolve itself one way or the other.
Oh yeah, sideways movement can be excruciating unless one is a daytrader! For now, i am comfortable with the most obvious count - an abc since 1150. Short-term, we may reaching a turning point, but medium term we go sideways to higher until May this year. Let's see how it pans out :)
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