Stan and I are looking for a high this week, or next Monday at the outside, but there’s a possibility that the high might already been in. SPX has been chopping above and below the daily middle band for a week or so now and if SPX should make a conviction break down from it the high might well be in. There are already very nice looking double top setups here on both NDX and RUT. We’re leaning higher first for a number of reasons, but they may not deliver. This is a week to be cautious about getting married to any longs.
One of the reasons we are looking higher here is the triangles forming on SPX and NQ particularly. That triangle is still forming on SPX, as you can see looking at the triangle on the RSI 5. This kind of triangle would generally complete, break up, and then do a thrust up out of the triangle that would open be the final move up in a sequence. SPX daily chart:
More than the SPX chart though, as is often the case, it’s the RUT chart that I’m watching carefully here. RUT already has a very decent looking double top setup in place and the daily middle band there at 1240 has not been seriously broken in the last few days. If that breaks down hard then this top would more than likely be behind rather than ahead of us, so I’m keeping a close eye on that. RUT daily chart:
We’ve had a very good responses over the last couple of weeks to our promotion at theartofchart.net before we raise the prices on our Daily Video Service and Triple Play Service. We’ve decided to extend the promotion another week so if you’re still thinking about signing up then you can still sign up at the old price. As long as the subscription is continuous, no subscriber will ever have their price increased, so that initial price would be the lifetime price.
While we are doing that I’ll keep posting the premarket videos that I do for subscribers for the Daily Video Service every morning. They get another from Stan after the close as well. I’m posting the link for these on my twitter feed at the open (@shjackcharts). If you missed that then you can see the that video here. I’m particularly please with my calls on ZB & CL this morning, which nailed the exact high levels on both today.
Stan and I did our monthly public Chart Chat yesterday, covering the usual 35ish instruments over a wide spread of markets. If you missed that then the recording for that is posted here.
