Putting The Bears On Notice

It’s a brilliant spring Sunday here in Valencia and as I’m sure you’ve also got better things to do than to look at charts I’ll make this one brief. The bounce which started on Thursday now has propelled us toward important inflection points on our P&F and medium term charts:

The bearish price objective of 1585 still persists but is but a few handles away from being wiped off this chart. We have a solid low pole reversal warning in place and let’s not forget the VIX buy signal triggered on Friday.

Thus, and after thorough consultation with Steven we have decided to put the bears back on notice. That doesn’t mean they are completely out of the picture however.

There is still the matter of that 25-day SMA plus a NLBL on the daily panel. Volatility/momentum suggests that we are going to see a fast move here and that soon. If the 25-day fails we are primed to drop lower. The weekly SPX however has managed to recover the 1614.21 NLSL and is painting a hammer – also a bullish sign. So we are close but the bulls are not out of the woods just yet.

Which makes this a great spot to be short until we push above that daily NLBL at 1646.53 – from there the bulls should be back in the driver’s seat.

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Cheers,