All ye of little faith [myself included] there's no denying that SPX broke out higher of its rising wedge; proof positive that bullish wedges *do* exist and the Bulls wn the game and plow over the Bears using them as fuel on the rise. The implication is clear; we are going another leg higher. By the wedge formation, my estimate would be around $1205 however I must note that the 200wk SMA lies above it at $1235 so I would burn that # into my memory as well.
Will it pull back? Possibly, and backtest [or test] that breakout support level. If so - buy the dip is envogue once again so take a jump with a stop below the breakout area. Good luck-
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It will take some time to see whether or not the advance which began in March is still on.
Assuming last week's decline to SPX 1090 was wave A of an ABC decline within an overall continuing advance, this week should bring on wave B: a rebound to about 1120. Wave B would then be followed by wave C: a decline to somewhere between 1088 and 1032.
If wave C goes below 1030, that would suggest the overall advance may be nearing its end. But if it holds above 103, we should soon thereafter see a bullish intraday reversal, setting SPX up for another attempt to reach 1158. If it fails 1158 again, it may signal the start of a lengthy range game, bouncing between 1030 and 1150 for many weeks or months.
But on the desirable side, if SPX beats 1158 next time, we'd probably get to 1230 pretty quickly from there.
Above 1230? Even i'm not that optimistic yet. If we just reach 1230, that'd be awesome, but there'd probably be a fairly lengthy period of resistance to getting much above that 61% retracement level.