S&P500 at a Critical Pinch Point (by Mark)

Hi fellow Slopers!  Mark from CEO Trader.  I’ve been in the one-final-push up camp for the simple reason we've been in what’s called a combination pattern since mid November. Usually the pattern is bullish and consists of more than one corrective pattern separated by corrective patterns in the opposite direction.

They are easily spotted when the height is too small relative to the preceding price movement. Depth of retracement is replaced by time.

With short term bullishness in mind, look at the S&P500 chart. Notice we are about to collide with a downward resistance trend line while resting on a smaller support line. So where would a good upward target be? The blue 50% Fibonacci level of the 2000 crash is a good possibility where the length of wave A would equal C.

However, that would mean the price has to break upward through the formidable descending trend line. It’s possible if the manipulators move the market high enough to trigger the short stop positions during light holiday volume.

An immediate bearish scenario means a drop to the 38.2% level minimum. I feel the defining moment will be this week.