SPX (cash) opened weak, pulling the 2 day cycle to the sell side with a projection of 1308 in the initial moments which has been reached and slightly broken. As I completed this update, the projection looked to be around 1304.50. A 5 day cycle buy signal late yesterday has whipsawed from a weak position, which could lead to some serious selling for a couple of days. Support is suggested at an 8 day cycle inner channel line at 1307 and a 5 day cycle inner channel line at 1305.50. They would become resistance if broken.
1309 is the point at which SPX hits a rising trendline from the December peak that was broken to the upside on January 18. Dropping and holding below that would complete a false breakout, which would normally have bearish implications.
Resistance is indicated at the 5 day cycle centerline at 1314.50.
Here’s the cash SPX chart (time stamp in lower right corner).
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The SP futures (or ES electronic mini S&P) have been mostly in decline since yesterday morning. Support is indicated at 2 day and 5 day cycle inner channel lines at 1297 and 1295.50. Resistance is indicated at the converged cycle centerlines at 1307.50. All 2 and 5 day cycle indicators are on the sell side, with one having a positive divergence.
Here’s a look at the Spoos 30 minute bar chart (time stamp in upper right corner).
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