Tuesday, June 28, 2016

SPX S&P 500 3-Minute Chart Sideways Symmetrical Triangle Breakout

There is a key moving average support/resistance cluster at 2021-2027. The key 12-month MA is at 2027 and decides whether the stock market is in a cyclical bull market or cyclical bear.  At 2032, a cyclical bull market is signaled for the weeks and months ahead although the battle at this 2027 level may continue. The 10-month MA is 2024. The 200-day MA and 50-week MA are both at 2021. The 150-day MA is 2022. The brown lines show this critical 2021-2027 area. Bulls win big above 2027. Bears win big under 2021. Price played inside the brown channel all day long. The move out the bottom channel rail before lunch time was a fake-out move to trap bears. Price returned inside the brown channel and is now breaking out the top.

The purple sideways symmetrical triangle was in play all day long and resolved to the upside. The vertical side is from 13 to 15 handles, thus, with the breakout from 2021, the upside target is 2034-2036 to satisfy the triangle pattern. The 100-week MA is 2036. The 100-day MA is 2035. Very strong price support levels for the SPX are 2057, 2046, 2042, 2032, 2022, 2019, 2011.

Thus, the key 2021-2027 cluster was violated to the upside making for happy bulls. The next area of strong resistance is at 2032-2036 (blue lines). Price is at 2033 attacking this new resistance zone. Bulls will be drinking champagne if they jump above 2036. Bears will rejoice if they can push the S&P 500 back under 2027 and preferably 2021. The drama continues. The HOD over the last few minutes is at 2034.36; pay attention to this level. Stocks are in a cyclical bull market (weeks and months) as long as the SPX stays above the 12-month MA at 2027. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.

Note Added 3:26 PM EST: Whoopsies, daisies. The SPX is retreating from the 2034+ high to 2028. The drama and theatrics continue. Price has technically satisfied the triangle pattern's 2034-2036 goal, barely, however, a move to 2036 cannot yet be dismissed.

Note Added 4:05 PM EST: The SPX ends the session at....... wait for it...... 2036. The fight at the 2032-2036 range continues tomorrow. Above 2036 and the bulls will begin a sustainable rally higher. Bears need to hold the line at 2036 or they will fold like a cheap suit.

Note Added 3:44 PM EST on Wednesday, 6/29/16: Bears folded like a cheap suit. The SPX ran to 2067 resistance, and punched up through, so 2072 is next. Price prints a HOD at 2073.13 and currently prints 2070. The bears are trying to hold the 2072 resistance.

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