Overall I'm still leaning long on the SPX double-top forming scenario I was writing about at the weekend. A lot of resistance levels have broken on various indices over the last week and more upside seems likely. A decent gauge of how this might go can be seen on the EEM weekly chart, with the apocalyptic looking H&S that I've posted before. On EEM the obvious upside target is at declining resistance from the 2011 high in the 42 area, which would fit with an SPX retest of the highs or test of the 1440 SPX pivot. Both would leave the larger bear scenario intact unless they broke above their respective resistance levels:
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Tuesday, 7 August 2012
Riding The Band
I was saying yesterday morning that we would either see a reversal at the daily upper bollinger band or a series of small incremental moves up as SPX pushed the upper bollinger band up, and what we're seeing so far is the second option. This can last a few days though the ES 60min chart is looking a bit weak here. Here's the SPX daily chart:
Posted by springheel_jack at 08:30