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From last night's update: Support for the spx sits at 1038-1036 and then 1030. Resistance pivots are at 1043-1046.
Review of previous night's notes and today's tape: I am a little under the weather, so I am going keep this short. The primary wave 3 counters are now rethinking the count and starting to say “new highs are coming”. New highs may very well be coming, but the bears still have a slim chance of a larger fall about to take place. But they pretty close to getting the door on their noses again.
The failed 5th wave pattern can still be in play, but the bears need to hold the spx below the 1070 level for that to keep that roadmap in play. The spx is trading with a bullish and a bearish pattern. The bullish is that the spx just finished an abc pattern on Friday of a wave 4 and is now starting wave 5 up. The bearish pattern would have the spx finishing wave 1 down on Friday and we are making a wave 2 now, or completed it at the 1060 level. As long as the spx stays below the 1070 level, this count is still active.
Bottom line: The indexes are stuck between wave counts and the bulls/bears will fight hard up here. We should know the winners soon enough.
Mel’s Corner: This is going to be a new addition to our site for any members looking for the next day’s trend through a unique system designed by Mel.
Numbers range from -20 thru 20. -3 thru 3 are "null" signals.
Negative numbers are bearish, positive numbers are bullish for the next trading day.
Mel’s trend finder indicator gave a -4 reading tonight, which is a weak sell reading for the markets on Wednesday.
Sentiment Indicator: (contrarian indicators) The short term sentiment indicator (1-3 days) is in extreme bullish territory. Intermediate term sentiment indicator (5-10 days) is in neutral/bullish territory. The longer term sentiment indicator (3-6 weeks) is in neutral territory.
Bottom line: With the short term in extreme bullish territory and intermediate term in bullish/neutral territory, we may see some chop tape as the intermediate indicator reaches extreme bullish readings.
"Smart Money" Trend The smart money was on the sell side all day today and fairly active.
For Tomorrow: Support for the spx sits at 1043-1038. Resistance pivots are at 1062-1069.
Gary
Today we closed out of: Proshares Ultrashort QQQ (QID) -1.75% Proshares Ultrashort S&P500 (SDS) -1.83%
For more of Gary Dean, sign up for a Free 15-Day Trial to his MarketsPath.com Trade Journal and receive intraday trade alerts on ProShares Ultra Index ETFs.
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