SPX (cash) opened weak, pulling the 2 day cycle to the sell side with a projection of 1308 in the initial moments which has been reached and slightly broken. As I completed this update, the projection looked to be around 1304.50. A 5 day cycle buy signal late yesterday has whipsawed from a weak position, which could lead to some serious selling for a couple of days. Support is suggested at an 8 day cycle inner channel line at 1307 and a 5 day cycle inner channel line at 1305.50. They would become resistance if broken.
1309 is the point at which SPX hits a rising trendline from the December peak that was broken to the upside on January 18. Dropping and holding below that would complete a false breakout, which would normally have bearish implications.
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Resistance is indicated at the 5 day cycle centerline at 1314.50.
Here’s the cash SPX chart (time stamp in lower right corner).
The SP futures (or ES electronic mini S&P) have been mostly in decline since yesterday morning. Support is indicated at 2 day and 5 day cycle inner channel lines at 1297 and 1295.50. Resistance is indicated at the converged cycle centerlines at 1307.50. All 2 and 5 day cycle indicators are on the sell side, with one having a positive divergence.
Here’s a look at the Spoos 30 minute bar chart (time stamp in upper right corner).
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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