At the Monday morning open the market pushed up to the short term trend line we had drawn last week (see chart below) and then started a pull back. The question now is - does it now move down and test the lower channel line we have placed on the chart? If it does this will become a serious pullback as support at 1540ish gets broken.
Here is the chart:
From all appearances a bottom has been set as the market reversed prior to testing the bottom of the channel and broke thru the top channel line. Also, it appears the Wall, the 34TD and 23 TD cycles bottomed late last week. Now we are looking for new tops (target 1600) . Here is a visual:
With the pullback toward the last part of the session it appears we may have set a top. If so, we now have a new channel with a lower high (and a lower low last low). I suspect we will find out the first hour or so after the open, Here is a visual (4-25):
So far - moving up as I stated in last update. Another 10 points on S&P to target. Limit buy to repurchase RWM shares about 10 cents cheaper than here.
ReplyDeleteDid not get the RWM I had a limit order in for....
ReplyDeleteInlet,
ReplyDeleteLet's see if that 2nd shoulder truly develops. Looks like a down day so far today and Phil Davis wrote that he is maintaining his short positions.
I still have some RWM.
I will be absent and have limited internet access most of the next week. Suspect we are down early week, maybe some bounce later.....
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