SPX (cash) traded in a line yesterday after blasting off at the open. The 2 day cycle oscillator was on the sell side from mid day until the close. 5 and 8 day cycle oscillators were in the topping zone but had not rolled over. SPX closed right on the 5 day cycle centerline at 1292.It will open below that this morning, which will trigger 5 day cycle sell signals. Support was indicated at the 8 day cycle centerline at approximately 1286 as the market opened near that level. The convergence of the 5 day cycle centerline and the first 8 day cycle upper channel line near 1292 mark likely resistance. Those lines should begin to curl over after the weak open.
As New York opened, the 2 day cycle projection appeared to be around 1284-85.
Here’s the cash SPX chart (time stamp in lower right corner).
The SP futures (or ES electronic mini S&P) trended softly lower after NY closed, then rallied through the Asian session before weakening in European trading this morning. After getting just above the 2 day cycle centerline at 4 AM NY time, it weakened, and by 7 AM was below the converging 2 and 5 day cycle centerlines, which were coming together at about 1284 as NY opened. The Spoos were trading just below that resistance area, at about 1282-83, with the 2 day cycle heading down, but the 5 day cycle still trending up. 2 day cycle indicators were still just barely on the sell side.
If those indicators turn up and the Spoos clear 1285, they would have room to run to around 1294. If they weaken, the first support would be around 1273-74.
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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