Well I missed a boring trading day yesterday it seems, but from a technical perspective it was interesting. On my SPX 15min chart I'm seeing strong positive RSI divergence at the low and a poor quality IHS mostly formed. I also have a declining channel with channel resistance in the 1380 SPX area today:
Short term I'm leaning towards seeing some more bounce today on SPX and I think we may well see a move to test declining resistance in the 1380 area. Yesterday's low is support, and if that's broken with any confidence I would be leaning bearish, looking to channel support in the 1350-5 area and next key level support at 1340 SPX. On a conviction break below 1340 I have the next important support at 1292.66, very close to that H&S target, and I would be leaning very strongly bearish.
- This blog has a copy of all header posts that I publish anywhere, so that anyone who is interested in seeing what my thoughts are on the markets can find them easily.
- I will be answering questions and responding to comments, so feel free to respond to any posts and I will see your comment even if it is not on the most recent post.
- If you're interested in seeing any intraday charts I post, I do that on twitter, and my twitter handle is @shjackcharts.
- The charts in the posts are as large as I can practically make them. if you would like to look at one more closely, click on it, and the link will take you to a larger version at screencast. If you click on that again, you will get a full page version, and can use the resizing function on your browser to enlarge parts of interest further.