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Bears Grab For Control of Tape

The SP futures (or ES electronic mini S&P) have been in a slow downward drift after making a double top coincident with the open of European trading, versus a pivot high earlier last night. The Spoos dropped below the 2 and 5 day cycle centerlines, both moving sideways at about 1339 and 1337 respectively, but in the last couple of hours they have fought their way back to the 5 day cycle centerline. The 2 day cycle momentum oscillator has edged to the buy side, but those based on MACD have not. The 5 day cycle oscillator remains on the downside.

If they can clear 1339 with conviction, the 2 and 5 day cycles might both turn up, with room to run to 1350.

Here’s a look at the Spoos 30 minute bar chart (time stamp in upper right corner).

S&P Futures Intraday Chart- Click to enlarge

Blue lines represent the nominal 5 day cycle. Red lines represent the nominal 2 day cycle. The first oscillator represents the 5 day cycles. The 3 lower oscillators represent the 2 day cycle. Cycles vary in length and are not the sole component of price action. Outside influences and random noise may have a significant impact at any time, often unpredictable. These charts and their interpretation are meant for educational, informational, and entertainment purposes only and are subject to the Wall Street Examiner terms of use.

SPX cash opened weak, falling below a 5 day cycle channel line at 1341.50 which should now become resistance. 8 and 5 day cycle oscillators are on the sell side. The 2 day cycle oscillators are on the cusp of sell signas from negative divergences. If the opening weakness persists for the first half hour, those indicators should drop to clear sell signals, which would put all of these short term cycles in gear to the downside. In that case, the first level to watch would be 1338.50, and the next support would be around 1334.

The initial 2 day cycle projection of 1340 is being touched as I write this. The secondary projection would be 1336 if this doesn’t hold.

Here’s the cash SPX chart (time stamp in lower right corner).

SPX Cash - click to enlarge

On this chart the yellow lines correspond with a nominal 8-13 day cycle. The cyan lines correspond with the 5 day cycle. The lower oscillators correspond with a nominal 2 day cycle (light blue) and a nominal 5 hr- 1 day cycle (red).

You can follow my real time intraday cycle updates with cycle price targets during the day at The Stool Pigeons Wire at Capitalstool.com.

The daily cycle charts are updated in the Wall Street Professional Edition market update every day. Get daily updates on the 4 week, 6-7 week, 13 week, and 6 month cycle projections along with regression channel and equal width channel support and resistance chart updates daily in the Wall Street Examiner Professional Edition Daily Market Update. Try the Professional Edition risk free for thirty days. If, within that time, you don’t find the information useful, I will give you a full refund. It’s that simple. Click here to become a member and get instant access to the current report and all past reports.

Day Trading Department

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