At 1118.74, the $SPX has completed it's price objective for the day, according to the upper channel trendline...Also, it is conforming exactly to the 'unadjusted' 1.272 model I wrote about Monday night....
I suspect now, we have either seen the top today, or it will be tomorrow...But we need corroboration...
One concern I have, is I haven't seen the expected A-B-C pattern, and the price action has only visited the bottom of the channel once and very early on, so there is a chance this market could fake out the Bears by declining here, going to the bottom of the channel and bouncing back for a 'C' wave. Just a thought...
In any event, something is about to happen, notice the terminal wedge:
Update: I took out a small short position just before the close...
2 comments:
I'm all in, albeit some of it pre mature, but that's ok.
Per your chart, IF it does breakout to the upside, the market will more than likely at least retest the breakout point for a minimal loss on the gambit.
IMO, the technical recent breaking of SPX resistance combined with enough up days to force some margin call buy ins has provided the primary fuel for this up leg.
Who's going to do the follow up buying to force another leg? It could happen but who would it be?
regards,
PS: apparently, someone "tested" the new circuit breaker rules today.
PSS: friends returned from a swim meet in Key West Monday evening. BP is setting up claim offices there. Natives very restless.
PSS: Can't be at the screen much tomorrow. Dern.
Hi Anonymous,
Thanks for the feedback...I'm thinking even if we get a little carry-over from the late day 'pop' we had, it shouldn't go real far, a lot of stuff over top of it...
The oil leak is becoming scarier all the time. Matt Simmons, well known oil guy, isn't sure they'll be able to plug this thing, even with the relief wells because of the downhole conditions...It's really grim...
Mark
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