Notice the upper and lower RED wedge lines. This means we are still in the wedge, having been rejected from the top trend line. Note also the yellow channel lines. We recently popped out of the channel and are re-entering. I talk about that phenom in prior posts.
If we are headed south, there is a heck of a lot in the way. The list of support levels includes:
1081ish - Top channel trend line
1071ish - 38% retracement of this very last leg (1018-1100)
1071ish - Top of prior leg (994-1071)
1065ish - 20p MA
1062ish - 50% retracement of this very last leg
1062ish - Bottom of the wedge
1053ish - 62% retracement of this very last leg
1040ish - Bottom channel trend line
1040ish - 50p MA
1040ish - 38% retracement of the prior leg
1032ish - 50% retracement of the prior leg
1032ish - Bottom BB
1024ish - 62% retracement of the prior leg
1020ish - full retracement of the very last leg
994ish - full retracement of the prior leg
That is a lot of support to break.
7 comments:
world governments are buying this rally, and I think it is unlikely we will see a true crash in the near term. Of course we are setting ourselves up for a huge crash, but that might be next year...
Here is what I saw today
We went to the rode along the gap at 1080 , then had several up legs on Volume.
The Bear case is still in tact , a close about 1097.91 would make it not so .
My EWT count would make today wave 5 of the sub rally . 10/13- 10/19 wave 3. 10/19- 10/21 wave 4 and
Wave 5 today .
A close below 1081 would make this count likely a close above 1098 and the Bull run is back on .
I added to my shorts at 1091 today
time will tell all.
Good Luck to all.
Bear case in tact - but on the edge again. Would like to see an immediate reversal - starting tonight in the futures market. I am not holding my breath!
I don't think you'll get it tonight. Do not use EWT, nothing but intellectual masturbation.
David , yes very tight range, too close Again , if we dont stop here 1120 is about a fact.
It is true that SPX is in good shape, but COMP, SML, and RUT have some catching up to do. With the AMZN news, tomorrows close should be interesting.
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