Menu Close
Posted in Day Trading, Latest Business Headlines, Technical Analysis

As Usual After Europe Opens, All’s Well- Morning Market Update

The SP futures were sitting on inner 2 and 5 day cycle lines around 1 AM ET, but began to sniff a strong open in Europe, and moved up off those support lines so that 2 and 5 day cycle oscillators turned up just as Europe opened at 3 AM. The Spoos crossed the centerlines of both cycles within the first hour of European trading, and have been stuck in a tight range since then around 1216, with both cycles moving sideways, but technically in up phases.

Resistance is indicated at the first inner 2 day cycle line above at 1221. If that’s cleared there would be an opening to move to 1227-29, where the next set of cycle lines, and likely resistance await. The 5 day cycle centerline around 1213 and 2 day cycle centerline near 1210, represent support. If they break, concurrent with rollovers in the cycle indicators, the next big move should be down to the 1200 area, where the next cycle lines converge for support.

On SPX ($SPX) cash as of Friday’s close, resistance was indicated around 1223-25 and support around 1217. The opening print is pushing the top of the range. A move outside that range could lead to an extended move in the same direction. On the cash market, both 2 and 5 day cycle indicators were heading down as of Friday’s close. The 2 day cycle indicators are on the verge of buy signals in the opening minutes. It will depend on whether the opening gain is sustained. Overall it’s a mixed bag as we await a break of the trading range in effect since mid day Friday.

Here’s a look at the Spoos 30 minute bar chart as of 9:32 AM NY time.

Blue lines more or less represent the nominal 5 day cycle. Red lines more or less represent the nominal 2 day cycle. The first oscillator more or less represents the 5 day cycles. The 3 lower oscillators more or less represent the 2 day cycle. Cycles vary in length and are not the sole component of price action. Outside influences and random noise may have a significant impact at any time, often unpredictable. These charts and their interpretation are meant for educational, informational, and entertainment purposes only and are subject to the Wall Street Examiner terms of use.

S&P Futures Intraday Chart- Click to enlarge

You can follow my real time intraday cycle updates with cycle price targets during the day at The Stool Pigeons Wire at Capitalstool.com.

The daily cycle charts are updated in the Wall Street Professional Edition market update every day. Get daily updates on the 4 week, 6-7 week, 13 week, and 6 month cycle projections along with regression channel and equal width channel support and resistance chart updates daily in the Wall Street Examiner Professional Edition Daily Market Update. Try the Professional Edition risk free for thirty days. If, within that time, you don’t find the information useful, I will give you a full refund. It’s that simple. Click here to become a member and get instant access to the current report and all past reports.

Gold (GC) has been in a nominal 5 day cycle up phase since Thursday. The up phase has been weak, essentially moving sideways. 1610 is now resistance and negative divergences have developed on the oscillators. A drop below the converging 2 and 5 day cycle centerlines at 1590-95 should trigger more downside.

Intraday gold chart- click to enlarge

The technical outlook for gold and the Precious Metals stocks are updated each morning in the Wall Street Examiner Professional Edition Precious Metals Report. Try the Professional Edition risk free for thirty days. If, within that time, you don’t find the information useful, I will give you a full refund. It’s that simple. Click here for more information.

Related Posts

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.