A rather boring day.
The short term oversold internal condition that we detected a couple of posts ago, and mentioned as a likely starter of a bounce in now resolved. The bounce came, and moved the index away from the bottom of the now month-old range of 1080-1110
Something I noticed on the chart above is that RSI has gone from oversold to overbought but index could not even rise to the top of the range. That is rather week, don’t you agree? I leave it up to you to study recent 60-min RSI cycles and see how price had fared.
Further proof of weakness may come if price cannot make headway before RSI becomes oversold again.
Regardless, we are still in range.
I added another upside target based on C= A based on minute wave B (green) being around 1085.
Volume was below average again. Daily breadth was positive
Daily momentum looks neutral.
McClellan Oscillator and the Summation Index look neutral as well.
We are just bidding time for the market to frustrate enough of the crowd so that they finally take some action. Right now, I would ignore both bulls and bears. Bears because they are yet to prove they can do something, anything, bearish. Bulls because they need to break this range to the upside with force. If they do that, if the index breaks out on good volume and breadth, I would not want to be short, period.
I continue to monitor the weekly picture
It looks like it may roll over. It needs the bulls to attack the tape and take the index up.
The bond dump, I mean, auction is over, so, if the conspiracy theorists were right, market should rise. And if not, you may not hear from them till the next dump by the Treasury.
Let's just pay attention to the price in this range, and plan our game(s) for the eventual break.
Support is 1090, 1061 (a tough pivot for the bears so far) and 1041. Resistance is 1107 (a tough pivot for the bulls so far), and 1133
There is no short term trend on S&P, just a choppy lateral move. Mid-term trend is up. Long term trend is down.
Have a Nice Evening!
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