Dec S&P has snapped back fairly quickly after testing 62% retracement support early in the week. The key now is how the market responds to the November 22 high at 1411. If the contract can break through there the market will maintain the larger pattern of higher highs and higher lows that's been in place since the summer lows. If the contract can't get past that level over the next few sessions it would be a sign that the market is entering a period of consolidation at a minimum.
There are still some warning signs that the market may be in the process of forming a top, such as the weekly swing point, which will likely form a reversal pattern at today's close. There's also the recent bearish divergence on daily MACD, showing a slowing of upside momentum. Of course bears do not really get any confirmation until support is broken and the closest level of significance is the low from mid-week and 50-day moving average at 1376/78.
No comments:
Post a Comment