The high window opens on SPX today and runs through to Monday 3rd October. During this period Stan and I are expecting to see a very significant high made that would then be followed by a decline that would be considerably larger than the modest retracement just completed. We are looking for a likely full retest of the all time high, with an eye on higher targets in the 2203, 2206/7 and 2210 areas.
On the daily chart SPX confirmed the break back over the daily middle band with another close above it yesterday. This opens a possible test of the daily upper band, currently at 2202. I’d generally expect to see a retest of the middle band from above today or Monday, and that is currently in the 2161 area. SPX daily chart:
Everything going as planned on the bull scenario so far with SPX breaking up yesterday and closing back above the daily middle band. We may well see a backtest today but the main thing to watch is that SPX doesn’t deliver a rejection candle that invalidates yesterday’s break up. I’m not expecting to see that but it’s always something I watch for after a middle band break.
As long as we don’t see that rejection candle we’re looking for a retest of the ATH and possible higher high with an ideal target at that retest or in the 2210 area. The high window opens tomorrow and lasts a week or so. We are expecting to see a significant high in the window that would be followed by a larger retracement.
Pre Market Review Video for Daily Video Service subscribers at theartofchart.net: