FAILED TO ACCOMPLISH THE TRADE

Requisite: SPX must hold the 100 d ma = 1766

Price has reached a meaningful technical support cluster with the 0.382 Retracement of the advance off the October 9 low at 1772; the December low at 1768 and the 100 d ma which stands at 1766.

In addition momentum and breadth indicators are oversold

Therefore odds favor a multiday oversold bounce (Countertrend rebound) that could reach the range 1812 (50 dma) – 1815 (Former support now resistance)

If this scenario pans out price would be forming a H&S which could lead SPX lower towards the 200 dma

SPX DAILY

Bullish reasons:

·      Positive divergence of 60 min RSI

 SPX 60 MIN MOMENTUM

·      Positive divergence of the McClellan Oscillator

 NYMO

·      A complete/Almost complete downward Zig Zag or Double Zig Zag

I am working with two potential counts; both need the validation of a potential Ending Diagonal:

1.   Double Zig Zag (Chart I posted yesterday after the close on Twitter/Stocktwits)

 spx 30 min

2.   Zig Zag

 SPX 30 MIN ZZ

Therefore today I will be monitoring if one of the two potential wedge patterns pans out and I will act accordingly opening a long position in UPRO. I will follow up  the setup on Twitter/Stock twits

UPRO 60 MIN

 

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