Well we looked very close to a high at the close yesterday but with the gap over strong resistance likely at the open we could see an extension further upwards. On a sustained break over the rising wedge resistance trendline on Dow then we are forming a new pattern that is not yet clear. The same applies on SPX. Dow 60min chart:
So where is resistance? There is resistance at the current all time high at 2020, and the daily upper band which may well be hit in the same area near the open. That could be a wave high, but more likely we would see a retrace shortly and at least a test of the highs. SPX daily chart:
The move up has been far faster and harder than I expected, and I'm struggling to find a comparable past example. What I would say though is that there is very hard trendline resistance in the 2040-60 area and it is the kind of long term resistance that rarely breaks. If we see a move to that area then this would generally be a termination move before a much larger retracement than the correction to 1820. SPX weekly chart:
I'd suggest not blind shorting this move. I'm expecting a retracement back into the 1990s or high 1980s today and that retrace will most likely be setting up a dip to buy for at minimum a retest of the all time highs.
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