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SPX Tentative Target Today, 1360 or Bust

The SP futures (or ES electronic mini S&P) have been drifting sideways since yesterday afternoon. Where have I heard that before? This is getting old. However, the trend continues to be ever so slightly to the upside, with the 5 day cycle oscillator staying pinned in positive territory for days on end.

The 2 day cycle centerline has risen to meet the current price around 1344. The 5 day cycle centerline is coming up just below that at about 1342. That should be support. If it breaks, the next support is suggested at about 1334. The 2 day cycle oscillators indicated that a down phase has been under way since about 4 AM. So far, it has done no damage, which suggests that the next up phase could show some pop. If they get past the pivot high around 1348, they could run to the next resistance area around 1356.

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 with a little pop to the 8-13 day cycle centerline at 1349. 5 day cycle oscillators are on the buy side, working against the 8 day cycle which is still in a sideways down phase. The 2 day cycle oscillators look toppy, but as long as they stay in positive territory, the slight uptrending will continue. If SPX clears this resistance area at 1350, it would be clear to run to the next indicated resistance zone around 1355. Wow, it doesn’t get much more exciting than this, racing fans.

As I complete this, the market is making its move to break out. A new 2 day cycle projection points to around 1353. But that may just be for starters. A preliminary 5 day cycle projection has a target of around 1360, if they can hold this pop. If they can’t, then it should pull back to support at 1345. If that breaks, the next support is down at 1336.

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

Lee Adler

I’ve been publishing The Wall Street Examiner and its predecessor since October 2000. I also publish LiquidityTrader.com, and was lead analyst for Sure Money Investor, of blessed memory. I developed David Stockman's Contra Corner for Mr. Stockman. I’ve had a wide variety of finance related jobs since 1972, including a stint on Wall Street in both sales, analytical, and trading capacities. Prior to starting the Wall Street Examiner I was a commercial real estate appraiser in Florida for 15 years. I was considered an expert in the analysis of failed properties that ended up in the hands of bank REO divisions, the FDIC, and the RTC. Remember those guys? I also worked in the residential mortgage and real estate businesses in parts of the 1970s and 80s. I have been charting stocks and markets and doing analytical work since I was a teenager. I'm not some Ivory Tower academic, Wall Street guy. My perspective comes from having my boots on the ground and in the trenches, as a real estate broker, mortgage broker, trader, account rep, and analyst. I've watched most of the games these Wall Street wiseguys play from right up close. I know the drill from my 55 years of paying attention. And I'm happy to share that experience with you, right here. 

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