Option Investor
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With SPX moving above the key level at 840 it puts us into the bullish wave pattern so it's for the bulls to lose now. The bears are on the defensive. At this point I would expect 840 to be a support level on any pullback and a break below that level would be a heads up that something is wrong. A break below 828, the new key level to the downside, would suggest the rally was only part of a larger pullback pattern, shown in dark red on the updated 60-min chart.

SPX 60-min chart:
[Image 1]

As long as the bulls can hold this up we should see a continuation higher to the upper trend line along the highs since March 23rd. I've got 870 identified as a potential high early next week (price projection based on two equal legs up from the November low and potentially the high for the bounce off the March low).

The Thursday prior to Good Friday is typically bullish so bears beware today. But I have to wonder if this being the Thursday prior to opex week, often a head-fake day, if today's rally will turn into a bull trap next week. Just something to keep the bulls on their toes.

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