SPX (cash) opened weak. 2 day cycle oscillators had been on the sell side since mid day on Thursday. The weak opening left 5 day cycle indicators on the brink of sell signals. The market has already raced ahead of the initial downside projection for the 2 day cycle. A 5 hr cycle projection points to an interim low of about 1305-06.
SPX is already below the 8 day cycle centerline, which is still rising sharply at 1309. That line should now be resistance. The first indicated support lines are an innder 5 day cycle channel line at 1306 and an inner 8 day cycle channel line at 1304. Things could get interesting if they don’t hold.
Here’s the cash SPX chart (time stamp in lower right corner).
The SP futures (or ES electronic mini S&P) have been flatlining since late last night. They are sandwiched between a slightly rising 5 day cycle centerline at approximately 1307, and a flat 2 day cycle centerline at 1309. It will be a very dull day if they don’t break one of those lines, but there’s room for a move to 1320 if they break to the upside, or to the first support at 1299 if they break down.
Here’s a look at the Spoos 30 minute bar chart (time stamp in upper right corner).
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