If S&P futures holds like this, there will be another opening gap.
S&P has been Yo-Yoing a range (1085-1100)
One could step back and point to a potential H&S formation, the top of the current short term range (1100) capping the shoulders, and the bottom passing the neckline.
Of course, one can find all sorts of H&S's if one squints and stares long enough.
Which one is the one to bring home the bacon? Maybe both. Maybe none!
1090 is, IMO, still a defining pivot, at least, for the short term.
1100 is the level for the bulls to take and hold, if they can ram through leading to the OpEx day, they may get some juicy squeeze party. They may also push the McClellan group of oscillators that I showed last night above neutral.
Let's see if futures hold and if bulls can do better than their petering out into the close of these past two days.
Let's bear in mind that weekly frame looks neutral with a slight negative tilt.
We can clearly see that index has been having tough time at making a higher high on a weekly basis, and, as we all know, rising tops and bottoms are what uptrends are made of.
I have a tendency to become less active or totally inactive during OpEx weeks, but here, we have a rather tight range of action, and I am observing with more interest to see if I can make a penny or two.
A failure to hold 1090 may turn short term picture negative and that would not be a good thing in a situation where daily is below a host of popular MAs (as I showed last night) and weekly is having trouble making a higher high.
Have a Nice Day!
S&P 500 – May 15, 2012 - Bottom Line: Long term trend is up. Mid-term trend is down. Short-term trend is down Weekly S&P stage is Late Advance (2-C) Daily S&P stage is Strong Decli...
1 year ago