BOT Long above 1250 in the sp500 The Dividing Line

Well I was clearly wrong about anticipating some type of drop in the market from the supposed rising wedge formation.  This market wants to go up and possibly on a longer term basis.

So to keep things simple lets just say that I am staying on a BOT long signal above 1250 on the sp500.  This is the clear dividing line between bull and bear in this market.

The market could very well be setting up for a cancellation of the monthly bearish MACD crossover.  This would take time for confirmation, perhaps into November and December, but it is starting to look that way.

So after all the dust has settled I think my initial observation about the market simply doing a RETEST of the larger head and shoulders bottoming formation was valid.  So once again the longer term analysis wins the day.

It is going to be quite interesting to see where the market is by the end of the year.

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One comment on “BOT Long above 1250 in the sp500 The Dividing Line
  1. JSD says:

    I think we’re looking at a target of 1340 – 1360 in the next couple of weeks (until the Nov 23 U.S. austerity deadline becomes the next news event). Let me throw some numbers out to you…

    Next resistance R1 = 1347; Midpoint of the weekly 3y linear regression 100 channel = 1339; Monthly Fib extensions = 1359 (1.61%).

    I believe in this rally because of the plummet in the /DX (which all other factors being equal is enough to cause a rally). Bonds are also selling off hard, so the money has to go somewhere and we’re not seeing /GC take off enough to account for the weakness in bonds.

    Also keep in mind that as bonds sell off interest rates go up which is excellent for the banks, so the financials will see a rally. As a lagging sector, this will also pull the SPX up.

    Gotta’ give power to the bulls.

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