SPX cash left us with a 2 day cycle projection of 1318 at yesterday’s close. Say bye bye to that. The new projection is 1328. A 3 day cycle projection points to 1326, and a new 5 day cycle projection resulting from this morning’s gap open points to 1329. Resistance is suggested at a 5 day cycle channel line right here at 1322 where the opening surge stopped dead, with the next resistance likely in the vicinity of an 8 day cycle channel line at 1327.
The pullback following the opening surge has broken an 8 day cycle line at 1319. The next support would be a rising 5 day cycle line at 1315, followed by the falling 8 day cycle line at 1314. There are no sell signals yet on 2 and 5 day cycle oscillators. However, there are sell signals on the futures (see below).
Here’s the cash SPX chart (time stamp in lower right corner).
The SP futures (or ES electronic mini S&P) rally peaked at 6 AM NY time, and just retested that high in the last half hour. They’ve essentially traded sideways in a tight range since 4 AM moving toward the rising 2 day cycle centerline now nearing 1312. That should be support. The next support would be in the area of the 5 day cycle centerline at approximately 1308. 2 of the faster 2 day cycle indicators have gone to the sell side, while the 5 day cycle oscillator is in a steady rise.
Here’s a look at the Spoos 30 minute bar chart (time stamp in upper right corner).
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