Extended markets ran into resistance where expected this week, within the Sept. S&P 2810-2820 (S...
12/01/2015 7:00 am EST
By taking a technical look at the S&P 500 on Monday, though Springheel Jack, of SharePlanner.com, thinks traders will probably see a test of the all time highs before going much lower, he illustrates that the perfect bull flag channel is saying there may be a dip to buy first.
I think it's pretty obvious that we'll be seeing a test of the all time highs before going much lower, but the perfect bull flag channel on SPX here is saying that we may well see a decent dip to buy first. Key support is at 2070 and if that breaks without first seeing a break of flag channel resistance, it's still possible that we could see a test of flag support in the 2000-10 area. SPX 60min:
RUT is testing double trend line resistance here and is very short-term overbought on RSI. There are both RSI 5 and RSI 14 sell signals on the 15min chart. The obvious next move is a test of short-term channel support in the 1187-90 area. RUT 60min chart:
SPX flag resistance is in the 2093 area and a break above kills off the possible set-up for a retest of 2000. Key uptrend support is at the 50-hour MA at 2082.70. A sustained break below opens a test of 2070 and a break below 2070 opens up a retest of the 2040 area.
Monday is a cycle trend day, so there are 70% odds that either buyers or sellers will dominate the tape Monday. The volume is low, though, so that may affect the odds.
By Springheel Jack, Contributor, SharePlanner.com
Related Articles on STOCKS
Ten industrial companies reported through the close of July 18, with all beating EPS and sales estim...
The bottom line is we are very near a major new infrastructure cycle. Although self-driving cars are...
The energy sector is getting a lot of attention lately as a safe haven that is benefiting from recor...