- WE'RE JUST RANDOM SPECKS OF DUST IN A TORNADO TO THE MARKETS .......
- CHARTISTS MUST PUT ALL BIAS ASIDE AND LET THE CHARTS DO THE TALKING OR WE'LL SEE ONLY WHAT WE WANT TO SEE
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Wednesday, 18 November 2015

Testing First Resistance

SPX tested falling channel resistance at the high yesterday and if that channel is going is going to hold then yesterday's high shouldn't be tested today. That high was a test of the 50 hour MA at 2060, the 200dma at 2064 and channel resistance at 2066. If the channel breaks then the path is clear for a test of the daily middle band in the 2073 area. SPX 60min chart:
SPX daily chart:
There was no negative RSI divergence at the highs yesterday so I'm leaning towards a test of the daily middle band, which is key (daily closing) resistance for this rally. If we see a break above it then the break needs to be confirmed with another close over the band on the next day. If seen I'd expect a retest of the 2116 soon after. Until we see that my preferred scenario is reversal in this resistance area back towards the 1990 support area.

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