- 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, 17 August 2016

Mind The Gaps

SPX hit the 2172 target I gave yesterday morning and has traded as low as 2168.5 at the time of writing. This area may hold, and if so the obvious rally target would be the left shoulder high at 2187/8, with important resistance at the 50 hour MA currently at 2182/3. If SPX was to fill the open gap at 2190.15 we would likely see a marginal new high, probably at or under 2200. If SPX fills the open gap just below at 2164.25, then that opens up the next decent support level and possible H&S neckline at 2147/8. SPX 15min chart:
A daily RSI5/NYMO sell signal fixed on SPX at the close yesterday and a daily RSI5 sell signal also fixed on NDX. The high on SPX is likely already made or very close. The obvious levels to watch for a possible high retest are the 2172 area being tested now, or the 2147/8 area if this area fails as support now. SPX daily chart:
In the short term the 60min sell signals have made target and if SPX can stay over 2164.25 I like the rally option here. If it breaks I'd be expecting to see a rally in the 2147/8 area, most likely to make an H&S right shoulder with an ideal right shoulder high in the 2177/8 area.

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