Option Investor
Printer friendly version
Not much has changed with the SPX daily chart from my perspective. Keene looks at charts differently from me and although our analysis may differ, they are both valid.

I see this chart as bullish and the retracement from the April 2nd high as very healthy. Before the April 2nd high was made I thought a retracement to around the 750 mark was baked in the cake but that did not happen telling me the bulls were a lot stronger than I thought. A retracement to 750 would be quite bearish now because if it did then that would mean a lower low and the trend would change.

So now I see a retracement to about 800 as healthy but once again the bulls are quite strong and that may not happen so what I am going to do as a momentum trader, I will buy when/if the SPX closes above the black neckline and add to my position when/if the SPX closes above the magenta trendline.

[Image 1]

Market Monitor Archives