Summary:
CPCE held for 2 days confirming at least a short-term top.
Could be more pullbacks ahead but the market may rebound first.
| TREND | MOMENTUM | EMOTION | COMMENT - Sample for using the trend table. | |
| Long-term | Up | Disbelieve | ||
| Intermediate | Down | Neutral | ||
| Short-term | Down | *A little oversold | ||
| SPY SETUP | ENTRY DATE | INSTRUCTION | STOP LOSS | Mechanic trading signals for reference only. Back tested since 2002. |
| ST Model | 10/14 L | 10/13 Low | Stopped out with loss on 10/26 | |
| Reversal Bar | Stopped out with gain on 10/21. | |||
| NYMO Sell | 10/21 S | *Adjust stop loss | *Break even |
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INTERMEDIATE-TERM: CPCE HELD FOR 2 DAYS CONFIRMING AT LEAST A SHORT-TERM TOP
2.8.0 SPX:CPCE, trend line held for 2 days confirming at least a short-term top. Let’s see how long the trend line will hold this time.
SHORT-TERM: COULD BE MORE PULLBACKS AHEAD BUT THE MARKET MAY REBOUND FIRST
0.0.2 SPY Short-term Trading Signals, Three Black Crows formed, so very likely more pullback ahead. The good news is that NYMO is now oversold so could be a rebound soon. Just if you really really want to buy this dip, better wait for a Bullish Reversal Day (Open low close higher) or a reversal pattern on an intraday chart. Right now I see neither of them.
T2103 Zweig Breadth Thrust from Telechart, oversold so it also argues for a rebound.
1.0.9 SPX Cycle Watch (60 min), a cycle is due today looks like a cycle bottom so again it argues for a rebound.
INTERESTING CHARTS:
1.4.0 Shanghai Stock Exchange Composite Index (Daily), Evening Star so could mean more pullbacks ahead.
