SPX

Fom my previous post

The daily momentum on SPX has reached an area where countetrend rallies end or mid-range consolidations begin.

Bottomline, the easy money on the uptrend from SPX 1010 has been made and now we are in a zone where the odds are 50:50 in favor of both longs and shorts.

Consolidation it was !

If you are getting bullish here, you are darn late to the party, an area where swings end. The consolidation was not deep enough to start a new upleg. But if the consolidation were to run anymore deeper here, it has the risk of pushing my swing indicators to sell, which will lead to a much deeper selloff. Will update, if i get a swing sell.

Correct, the easiest money was already made. The gap refuses to fill, the closing rally was notable, we may see a few more dojis sideways to work out the o/b first before a last pop and then a sharp pull back into next week. If it works that way, the sharp pull back will be a buy than a sell for another up swing later next week...

Correct, the easiest money was already made. The gap refuses to fill, the closing rally was notable, we may see a few more dojis sideways to work out the o/b first before a last pop and then a sharp pull back into next week. If it works that way, the sharp pull back will be a buy than a sell for another up swing later next week...

To start a new upleg, we need to push the current extreme overbought status into a oversold status. That will require sacrifice either in terms of time or price. If the sacrifice is in terms of time, we are going to churn mindlessly in a sideways consolidation. If the sacrifice is in terms of price, we will see a scary plunge which will all get over in a day or two. Which one ? My crystal ball refuses to answer. So i wait.