The pictures we present in the following pages will speak more than words. Even a one-eyed technician with a crooked ruler can determine that trend structure remains very weak across the major U.S. indices we review here.
The S&P 500, NDX, and Russell 2000 have rallied sharply in the last few days and have all have come into an area of resistance and have ellipse sell signals
We are highlighting WTI Crude Oil and the XOP to start. The one-day pullback in WTI held the uptrend off the December low and a place to add to a long position.
We recently wrote up notes on the buy zones for the S&P 500 and QQQ. These indices have reversed nicely from the target zones identified in our work, and now it’s a matter of managing the trade.
The S&P is up a little over +200 points from our buy signal last week and now getting close to our MFU-4 target area. Momentum is strong, and we have improving internals, which means the index may exceed this target that was generated off the March low.
The recent pullback in both the S&P 500 and Nasdaq 100 looks like a buyable pullback into support. Both indices have held and turned up from their respective 50-day averages and the lower end of their intermediate-term regression trend channels. Both indices have also turned up from an ellipse buy signal. For the S&P, we get upside in the 4815—4835 area.
The recent pullback in the equity market has the S&P 500 down to an ellipse buy area and at the lower end of its long-term channel support. This looks like a spot to be a buyer.
After a 5-day pause at the MOB target band, the S&P was able to get above it and extending the advance off the October low. On page 3, we review the weekly chart with the next major hurdle for the index.
