Charts have spun bullish but expect some speed bumps ahead … $spx

Good morning.  Finally the bulls get a decent follow through day and the bears are starting to worry.  The news cycle is beginning to get less Armageddonish..  Earnings continue to come in strong and outlooks not so bleak.  Last week the bulls gained quite a bit of respect as the bears lost their heads and shoulders downside, the 500 EMA, an upside breakout of a wedge.  Still on the bears side is the 200 DMA overhead on the SPX 16 1113.  That may get tested this week.


Quote of the day:
A man is rich in proportion to the number of things he can afford to let alone. – Henry David Thoreau

 

Chart

Score

 Day-1

Change

40 DPI

+6

+6

0

52 WNH

+6

+6

0

10 DHL

+6

+6

0

Total

+18

+18

0

 

Our breadth charts remain maxed out and we look for weakness which will most likely come from a neutral score on the DPI which for me will become a buy signal for more upside.  Today will be a test.

 

$SPX chart:

 

I have a wide range today of 1087 to 1115 on the close.  I have turned the 1080/81 area into a hold zone for the bulls and a need to close above 1087.  The bears, of course, want to do the opposite.  Upside for resistance I have the 1103/04 breakout confirmation area which the bulls were unable to break,  above that is 1108/10 then 1115.   Don’t forget the 200 DMA demon that sits at 1113ish.

 

Downside I have 1094 and then 1090 and the the must hold 1081.  There is a gap to be filled if the bears getting super aggressive down at 1070 which we will have to stay mindful of if the market starts to weaken.

 

The markets look like they might open flat to slightly down.. there should be some testing to the downside and we could put in an NR7.  July 19th is our lowest range day in the last 6 which was about 13.6 $SPX points. 

 

We will watch the breadth intra-day to see what type of follow through on the 52 week new highs we can get.

 

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