The manipulation that’s the dominant feature of scam week (opex) trading typically rips cycle patterns to shreds, and this week has been no exception, but we do the best we can to identify support and resistance and likely turning or breakout points. Yesterday the 2 day cycle projection on the cash SPX at the close was around 1225-30. The futures got to a low of 1220 this morning. Some 2 day cycle indicators formed positive divergences as the spoos made a lower low. The futures are now trying to break through the descending 2 day cycle centerline at 1233.75. The 5 day cycle lines are also still descending.
All of the cycle oscillators are on the cusp of buy signals. If the Spoos break through 1234, that would signal an upturn in the 2 day cycle. If they fail on the opening push, then the level to watch for support would be the converged inner 2 and 5 day cycle lines around 1227-28. Below that the downside would open up to the outer 2 day cycle lines now around 1216 and 1211. If they do break through the 2 day cycle centerline, the initial resistance should be at the convergence of the 5 day cycle centerline and the first inner 2 day cycle channel line now at about 1240.
Follow my real time intraday cycle updates with cycle price targets during the day at The Stool Pigeons Wire at Capitalstool.com.
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Gold looks weak.
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