S&P 500 Index: SPX looks ready to rally back to highs
S&P 500 Index SPX
This chart shows an island reversal at the top, created by the
first exhaustion gap atth etop of the chart, followed by a
continuation or breakaway gap which led into yesterday's
waterfall decline. we wer e looking for a decline to 2607 - the
low was 2593, some 14 points out. Close but no cigar. As with
the Dow this index has collapsed 10% (2584 is 10% off the
top), within 9 points exactly. In 2 days. Fast, sharp two day
declines are a sign of a strong market. Additionally, the S&P
has touched long term dynamic support at the nadir and has
left spikes off it. Can get long again on dips now looking for a
retest of the highs. Stops below 2640 for smallish loss if wrong
from here.
This chart shows an island reversal at the top, created by the
first exhaustion gap atth etop of the chart, followed by a
continuation or breakaway gap which led into yesterday's
waterfall decline. we wer e looking for a decline to 2607 - the
low was 2593, some 14 points out. Close but no cigar. As with
the Dow this index has collapsed 10% (2584 is 10% off the
top), within 9 points exactly. In 2 days. Fast, sharp two day
declines are a sign of a strong market. Additionally, the S&P
has touched long term dynamic support at the nadir and has
left spikes off it. Can get long again on dips now looking for a
retest of the highs. Stops below 2640 for smallish loss if wrong
from here.
Commento:
Raise stop to 2643 for break even if this falls away again from here - if so will look to buy again from 2622
Commento:
Continuation pattern in formation: looking to buy on break above the minor falling parallel above price now with stops below the same parallel once broken above
Commento:
A beautiful worry free break out of the continuation pattern with no stops hit or even threatened - the best kind of break...raise stop to 7672 for 38 or profit if it fails later