“Those who have knowledge don’t predict. Those who predict don’t have knowledge.” Lao Tzu, Chinese philosopher, 6th century BC

PAYPAL

Monday 27 July 2015

27 Jul 2015 - Back To 200MA

It wasn't long ago that we were in this level and a bounce higher has reinvigorated the bulls.  This time around the bears are having a laugh.  If you notice though, this has gotten to be a dangerous game for the bulls as the daily moving averages has caught up to price.  How so?  With price trending sideways for quite a few months, the 200 has slowly but surely made its way up and now price do not have room for margin of error.  Prices need to move up again and make some gap between it and the 200 day or it will risk losing solid footing and collapse.

That said, we saw an intra-day signal that stayed in OS position and kept a fairly good momentum since last Friday.

MT: DOWN
ST: DOWN
PA: DOWN

The EW structure of the ES looks to be missing a sub-wave 5th.  This assuming that its a 5 wave affair of course.  Reason why I point this out is because I cannot easily tell in the SPX chart, so we would probably look for another lower low if the structure count is correct.


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