It's the trendline all the way up from the 666 lows on the S&P 500 through the 1810 level, on a log10 daily chart. It also falls at about the middle of the current down channel at about 2676 on Wednesday.
I think it will hold for now, needing a proper 3rd wave impulse to break it down. IT IS THE RALLY CHANNEL, for the entire doomed reflation of QE and the Chinese credit bubble, so we will visit it and its sister, the 2-4 trendline from 1074 through 1810, a few more times as overhead resistance in the coming weeks.
Keep an eye on $IRX, the 13-week T-bill yield, into the November FOMC. My spidey-sense tells me that the Fed may surprise-hike in a non-press conference meeting and make some waves (3rd waves).
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| S&P 500 daily |
8 comments:
A 26" barrel on this bad boy, oh my.
$IRX $IRX $IRX $IRX $IRX $IRX $IRX $IRX ...
We touched the center line of my down channel this morning, so I exited all bearish instruments.
If we're set to bounce, it should go ABC, with A hitting the current overhead resistance, the wall of the channel.
I have today's sell-off finishing up a B wave, with a C rally on deck next. I'm a bit disappointed the B wave gave up all the A rally - and a little more - though B waves can do that. Defo going all in short as the expected 5 wave rally to complete the C wave.
BPSPX now lower than in April when SPX was under 2600.
Now I'm in Christian's camp re his latest chart, with today's sell-off a fifth wave ending move. Big rally soon, though looking more like the end of the world as we know it has begun.
NOT A FORECAST...technical indicators have not reached extreme levels...the down trend could continue into the November 5 time frame before a meaningful rally...
It’s going down faster than a redheaded Waffle House waitress on Friday night in the Motel 6
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