With all the geopolitical tension going this long weekend: North Korea expected to test a ballistic missile, today's dropping of a ten-ton bomb on supposed ISIS tunnels in Afghanistan, the mounting tensions with Russia, the Frexit vote... I'm a bit surprised the market held up as well as it did. If any surprises occur over the weekend, Monday and next week could push hard downward towards that elusive ~2300 or ~2250 level. Latent TLs have supported today's close on hourly SPX with both the price and momentum charts.
On the UVXY 15-min chart, we see the price bar continuing to make new highs and is still nicely above the 200ma. By way of reference, while the price has risen up to the ~22 level, over the last two years, the price has been up at to ~104 last October and all the way up to ~2280 in August of 2015... so the price is still relatively low and can move quite a bit higher without even hitting the next highest range.
Finally, the daily SPX fast momentum chart seems to suggest a bit more movement to the downside... with the momentum indicator pushing downward towards the zero line, it could actually shoot below to the confluence of the latent DTL and the UTL, just below the zero line... a move like that could drop the price level back down to the price UTL as a back-test of that TL, which is about that ~2250 range I keep citing... interesting times indeed... and as always... time will tell.
Link to SPX hourly chart: https://postimg.org/image/q3t8hpkux/
Link to UVXY 15-min chart: https://postimg.org/image/5xpqitp7d/
Link to SPX daily chart: https://postimg.org/image/5m8a628rd/
Edited by tsharp, 13 April 2017 - 07:40 PM.