At the close of the NY cash market yesterday, 2, 5, and 8 day cycle oscillators were on the sell side, but initial downside projections around 1265 were reached on an implied basis shortly after the close. However, if the SPX does not recover above 1267 in the early going, it looks vulnerable initially to 1262-1260.
ES futures (S&P electronic mini) rallied in Europe but in the last half hour began to pull back, putting faster 2 day cycle indicators on the sell side, with slower oscillators on the cusp. The 5 day cycle is still trending, but its oscillator is in a negative divergence. So it appears that the bears have a shot today. The key is probably the converging 2 and 5 day cycle centerlines at 1258-60. If that breaks, the first support line is around 1250. On the other hand, if it holds, the first resistance is up at 1270.
Here’s a look at the Spoos 30 minute bar chart as of 9:30 AM NY time.
You can 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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