Prices just managed to stay under the 75ma of the SPX Daily chart. Our sentiments are still bearish and overhead resistance looked to be adding up based on how the 20ma and the 75ma are converging. Tomorrow is a reactionary day, so let us see if this is going up or down. Our intra-day signal triggered a sell, but we wont know until we see the mannerism of the price movement. A potential divergence tomorrow would move prices higher while our signal indicates a sell.
Main-Trend: DOWN
Short-Term: UP
Note: If we are looking at these movement as an ABC pattern correction to the downside. We should then look at the 20ma as the resistance line for the B wave to end so that a C wave down would equate to a move to the 200ma just following the dotted line. A lower low below that would raise the possibility of a 3rd or extended C wave.
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