SP500 Chart looking bullish, page-2

  1. 195 Posts.
    And this commentary to back it up...

    Upside Break & Rally
    The SP100 (OEX) consolidates at low, breaks to upside for strong rally in the afternoon.

    The commentary on this page is based on the S&P 100 (OEX) Index. Equivalent numbers for the S&P 500 are in ( ) within the commentary.

    Yesterday's commentary, "...Looking at the 60 Minute Chart, you see that the index is now approaching a key lower trend line, which intersects at 440 (875) ...will watch the approaching lower trend line at 440 (875) for further information..."

    The OEX continued a shade lower this morning and nearly hit the critical 440 (875) level. The index then consolidated above this level and eventually broke the consolidation to the upside to rally big on the afternoon.

    Consolidation boundaries are powerful, and today's example was a very good one of just how powerful they can be. Looking at the 60 Minute Chart, you can see that the index reversed perfectly off the lower trend line to power higher. Now, looking at the Daily Chart, you see that the index could be forming a possible higher low, which could be indicative of a continued move higher.

    The index is currently above resistance at 460 (910). If the index can hold above this level, we could see more upside movement. However, if the OEX breaks below this level, this could be an early signal of an impending retracement.

    Short Term OEX

    Short term, the OEX has formed a clear trend line beneath the lows in the 1 Minute Chart. Watch 416 (919) down for a downside break of the trend line for tomorrow's Open.

    Medium Term OEX

    In the medium term, we covered our Shorts today at the entry for a breakeven trade. We are now Long from 462 (915), and we will continue to hold our 2 (2) point stops. Watch for Shorts below 457 (905) tomorrow, with 2 (2) point stops.

    Summary

    The OEX consolidated at the lows today, followed by a strong upside break, which led to a fabulous afternoon rally. We covered Shorts at the entry for a breakeven trade and are now Long from 462 (915), with 2 point stops. Watch 457 (905) down on Thursday.



 
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