7 Jan 2016 - Did You Know?

Since Tuesday I have been warning that an acceleration could occur.  If you are a daily reader then you were prepared for this move.  If you are not, and you want to be ahead of the game, then this blog is for you..  The fact that we become aware of a possible situation can keep us out of trouble, and ready to react to different conditions.  Often times a trader or investor is stuck trying to figure out what to do when a certain scenario happens.  This usually results into a loss due to indecisiveness, and lack of planning.

If you do not believe in technicals then you are probably hitting up the wrong resources for technical analysis.  Here, I keep things simple by concentrating on a few if not one indicator and a few sentiment signals.

Back to the analysis, the intra-day chart did remain in OS range which foresaw an acceleration to the downside.  A very good move that even exceeded my expectations of a support at 1960.  Normally a few pts. below an expected support is considered successful.  But to have a 20 pt. spread is just UGLY.  At this point though,  the low produced today by the SPX rests on our Gann angle that has been respected by price for a long time.  Some might call this a trendline, but this line is one of Gann's square angles.

Be aware that yesterday I mentioned that there was a divergence in place in the intra-day level and have labelled it by mistake as a negative divergence instead of a positive divergence.  This divergence is still in place, and I would look for a rally as early as tomorrows open at the least.  We can confirm this through the intra-day chart again.  If the signal fails to come out of the OS condition and eliminates the positive divergence, then expect that a lower low is highly possible.  The last time my Sentiment signal was this bearish was back in Aug. 2015, so I would not be surprised if we get a surprised fall.  Not to say it would happen, but just an increased risk for one.

SEN: Bearish
ST: DOWN
PA: DOWN

BONUS:

I don't normally forecast long-term charts, but this is becoming intriguing since the last few months of development in pattern and price.