I’m having a very disrupted week this week as my wife has a big deadline and I’m covering. Normal service will resume next week, but I will be absent from my desk a lot over the remainder of the week.
The nice bear setup yesterday morning fell apart quickly and, if there is no significant support break here, then SPX is still heading up with an obvious target at wedge resistance in the 2130 area. If bears can break below yesterday’s low at 2103.75 and sustain trade below it then I would now have a target in the 2087 area, but I’ll be waiting to see that happen before thinking that the bears might get a serious shot today. SPX 60min chart:
Coming into the week there is now a very nice H&S formed and testing the neckline late Friday afternoon. On a break down the target would be 2088. Will the bears deliver? Well they’ve blown a few nice setups lately, nothing as nice as this but we’ll see. SPX 5min chart:
SPX has still not reached my wedge resistance trendline target in the 2130 area and might not of course, but my working assumption is that this uptrend will be incomplete until that is tested. I could be mistaken however. SPX daily chart:
Hmmm; SHJ seems MIA (I haven’t read comments, so maybe there’s info there). In any event, here’s one of my shorts whose pattern is squeaky clean. I think it speaks for itself:
SPX made a higher high yesterday but still hasn’t yet made my upside target at wedge resistance. My working assumption is that will be hit today or tomorrow. Important support is at the 50 hour MA at 2103/4. We may see a spike down before the high is made to set up the reversal pattern. If so I’d be looking for decent support in the 2100 area. SPX 60min chart:
I had never even heard of this company until yesterday, but I shorted it (to good results, so far). Here’s the triangle failure: