It's only been 2 days since the SPX has touched the 200 day MA, but we shouldn't expect any less from this line. It is most watch by many analysts, and it should retain some resistance here. The problem now is to figure out if the divergence on the daily chart will confirm a turn-a-round or lose its divergence as price crosses above the moving average and continue marching higher. Both scenarios are valid, and only one will prevail. Bulls will want to terminate the divergence and keep the signal in OB, while the Bears will want to remove itself from the OB condition with the divergence intact. Unfortunately, these levels are not a trade opportunity rather than a gamble.
SEN: Bearish
ST: UP
PA: UP
If anyone is looking at the Gartley Method, the .786 ret. value is at the 2050 level. This would also close the gap on the SPX cash chart which you can see in the 60min chart below.
There is both a wedge (red dotted line), and channel line (green dotted line) in progress. Breaking these two patterns would give us a clue to an initiated CIT signal.
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