Well that was a bit more strength early than I expected, but no complaints. When the SPX punched straight through 1050 pre-open the future became a lot clearer.
We are now back over last Wednesday's close and the 1050-1055 resistance that I though would be significant on the way up was a 'no contest' again.
The high came at 5/8th or 61.8% of the range down. Big day.
It says a lot about the strength of this move up since 8 July when we have an up day like that without retracing even close to a 1/4 of the entire move up since 8 July.
Support continues to come in at a very high level when considering the rally from 8 July. That is highest it has come in so far and it has left a nasty bear trap for any shorts below last Wednesday's close. The move out of this low has so far been faster than out of the two prior retracements since 8 July.
The similarities with now and how the index traded around 8 July are clearer. The outcome 'should' continue to be the same, except this time the index 'should' exhaust the buyers.
It 'should' be clear when the index exhausts. I believe it is safe to say that support will continues to come in at high levels until there is a significant exhaustion of the buyers.
There is now a small space (1.7 points) between Friday's low at 1041.17 and the prior swing high of 28 August at 1039.47 confirming the strength of the up trend.
Again, the NASDAQ is looking stronger that the S&P with a huge space between Friday's low and the prior swing high.
6 trading days to cover another 43 or so points for the S&P 500 is easy done now and perhaps a day of consolidation even a down day tonight to trap some more shorts would be healthy.
I would have preferred to see the tension build just below 1050 and then take off Thursday or Friday but this is still okay for 6 October high.
With another low now at an 8th division of 90 days from 8 July low (there are now 4 lows at 8th divisions of 90 since 8 July) the 90 day low to high from 8 July appears more probable now, although there may be something I'm missing.
I don't know exactly how it will play out between now and 6 October (if that is the high day) but last Friday 'should' be the low before the final high if there is to be a high on about 6 October.
I'm minded here to not pay too much attention to the financial media or others with vested interests (especially brokers, no offence meant ... well may be a little bit of offence meant lol) and just stay focused on the what the charts are saying.
(20min delay)