BullBear Trading: Stock and Financial Market Technical Analysis

For the last couple of weeks I have been warning that short and intermediate term technical indicators were suggesting that SPX would correct soon. SPX has doggedly edged higher during that time but now appears to have rolled over. Today's intraday reversal (after a news driven spike to a lower high) ended with the market below trendline support and resting on the key 1122 level. This comes after a bullish impulsive 5 wave rally from 1040.

The larger context is a consolidation or pullback in the vicinity of the neckline of a four month head and shoulders reversal pattern. There is some chance that the correction will be a lateral abc formation unfolding just above and below the neckline between 1120-1150.

The McClellan Oscillator is showing a negative divergence on the short and intermediate terms.

The Dow Theory chart shows the first non-confirmation in quite some time as the Transports have failed to confirm the Industrials recent move to higher highs.

These are just some of the many short and intermediate term divergences and non-confirmations that I am seeing on the indicators that I follow. It would seem apparent that some kind of a correction is in order at this time. I do not see evidence that it will be anything more than a relatively mild correction, though I suspect that once begun the majority of market participants will anticipate the resumption of an ongoing bear trend. I'll be looking for a divergence between bearish sentiment and technical indicators together with some kind of three wave corrective pattern to time the next long entry. Traders should continue to hold their core long positions since we are most likely in a bullish impulsive 3 of 3 up and when the turn comes it may be extremely difficult to find an entry point.

If you would like to receive these reports as they are issued become a member of the BullBear Trading Room at www.TheBullBear.com. It's free to join and no credit card is required. If after your first month you decided to stay with us you simply make a monthly donation. If you have benefitted from this report feel free to make a donation today. It represents many hours of work and years of study and practice.

Views: 45


You need to be a member of BullBear Trading: Stock and Financial Market Technical Analysis to add comments!

Join BullBear Trading: Stock and Financial Market Technical Analysis

Join BullBear Traders

Free 30 Day Trial
No Credit Card Required


Pay with Cryptocurrency and SAVE!

6 Months BullBear Trading

for $100

(regularly $120.00)


Steven Vincent's market analysis is published on:

Steven Vincent's opinion is polled every week for the Birinyi Associates
TickerSense Blogger Sentiment Poll

© 2021   Created by Steven Vincent.   Powered by

Badges  |  Report an Issue  |  Terms of Service