SPX cash hit the 8 day cycle centerline at 1320 late on Friday and immediately began to pull back. It had also hit a 2 day cycle projection of 1320. The 2 day cycle oscillator however did not get to the sell side by the close. They left that for this morning’s open after the futures sold off all night in Asia and Europe. The 5 day cycle oscillator had been on the sell side since mid day Thursday and never left that path on Friday. The projection for that cycle as of Friday’s close was 1301. After the opening moments this morning, it may have shifted to as low as 1297. The 2 day cycle projection after the first few minutes of trading also appears to be around 1300.
SPX cash opened below converging and declining 5 and 8 day cycle inner channel lines at 1306, which should now become resistance. The next support is suggested at a falling 5 day cycle channel line at 1300.
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Here’s the cash SPX chart (time stamp in lower right corner).
The SP futures (or ES electronic mini S&P) shave been trading lower since 6 PM NY time last night, and are now near 2 and 5 day cycle inner channel lines around 1297-98, which should be support. Resistance is at the 2 day cycle centerline at approximately 1307 and declining. 2 and 5 day cycle oscillators remain on the sell side at very weak levels, with only one of them having a slight positive divergence. A weak bounce later this morning should lead to lower lows this afternoon.
Here’s a look at the Spoos 30 minute bar chart (time stamp in upper right corner).
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