10am update - first target remains sp'1397

Good morning. As has been the case since the QE spike high in mid-September, the first target for the bears to break is the important cycle low of sp'1397. If bears can close in the low 1390s, it will conclusively be a major sell signal, and open up a fast move down to somewhere around sp'1345/20 within a matter of days.


sp'60min

sp'daily5

sp'weekly, rainbow

Summary

*there is a discrepency between stockcharts and my trading screen, I never really seen it happen before. but SPY' indicates we're actually sp'-4pts @ 1409, rather than just the 2pts.
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An election week, and it was only yesterday that I read the market used to be closed on election days prior to the early 1980s. Hmm.

So, we have opened a touch lower, and now we're battling it out. The dip buyers are testing the water, I think they will need a life raft by the closing hour.


Weekly charts bearish.

We now have the third red candle on the weekly rainbow chart. Baring a bizarre jump higher, into the 1440s, I have very high confidence we're now headed lower across this week.

Special note..
As I posted over the weekend, look to the dollar, bears should be seeking 81s within the next few days...that will open up 84 - which should in theory equate to sp'1345/20 or so.

back at 12pm