As you can see prices for the SPX has stopped right under the Gann angle. Now I know that this is an orthodox way of using Gann angles but if prices are respecting it then why wouldn't we use it as part of our analysis? Since our ST has turned up from yesterday prices validated the signal by its continued move higher today. This bullish strength in a bearish market is impressive, but we should not lose sight of the larger picture. Any move lower should be much stronger than the strong rally we have been seeing this week. Ed Carlson's Lindsay analysis has a probable high near the end of the month possibly right after thanks giving. You can read it HERE..
As for our own analysis, we are hitting a resistance that is obvious to the naked eye when looking to the left of the chart. Prices could still push through this as our ST is on the uptrend, but if this is a corrective move a-b-c from this weeks low, then we should be looking for a 3 wave move up which we have currently. If we get another wave higher then it is possible that we are pushing towards a diagonal ATH to perhaps finish of a 5 wave rise. This would make a the flash crash in Aug a corrective event.
The intra-day charts has stayed in the bullish end for most of the day and in OB territory hence our 33 pt. rise. We also have a neg. divergence that we need to be aware of so could this be the signal for a turn-a-round tomorrow?
SEN: Bearish
ST: UP
PA: UP
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