SPX for the most part of the day hit another one of our angles above. The continued correction I was anticipating did not occur but nonetheless we had the higher prices that we were expecting. It seems now that we could be forming a ending diagonal and this could be a deeper retracement since we have been in an overbought condition for quite sometime now. A break of this diagonal triangle would signal that the trend has changed. Whether short or long term will have to be analyzed later in time. Note that divergence in the 60min Stoch. and MACD are present as well. A higher low in price with the indicators resetting would indicate that higher highs should be expected when the time comes.
Main-Trend: UP (Unconfirmed)
Short-Term: UP
Note: Our daily Upper BB line is right at 1727 at the moment, so we should watch that level for possible target before a reversal.
It's to far out to say this analysis is certain but it is just another way to look at things. Nothing is impossible until we get there... This scenario would put the Nov 1st reactionary day as a low.
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