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The Bounce for Year-End in Share Market
By: Marty Armstrong | December 28, 2018

We should see a 3-day reaction high form on Monday the 31st. We have three Directional Changes in a row Monday-Wednesday show this warns of choppiness. The technical resistance for a bounce stands in the 2376897 area for now. The Daily Bullish Reversals are 24058 and 24089. The main target weeks ahead will be the 14th and 28th during January. The 2017 closing was 24719.22 and the 2017 high was 24876.07. A lower closing for 2018 will warn that the market is entering 2019 weak. We do have a Monthly Bearish Reversal at 23344 followed by 21600. The Quarterly Bearish Reversal lies at 22416 followed by 20378. Therefore, a closing for the 31st below 23344 will signal that the market is still weak and can test the 21495 area at a minimum. A closing on the 31st BELOW 22416 will warn we should see a further decline to retest that 20000 level.

When we look at the Cash S&P500, we see that the 2017 high was 269497 with the closing at 267361. The 224513 was the 2017 low. So far, this index reach 234658 intraday on the 26th. The Daily Bullish Reversal stands at 2574000 and technical resistance stands at 257375.

The Monthly Bearish Reversals lie at 268230 and 259460. Electing the first will imply a further marginal decline into early 2019 whereas which need a closing below both to imply a test of the 240400-24525 level.

The Quarterly Bearish Reversal on the cash remains at 240760. We need a closing below that at year-end to signal a sharp correction is possible.

Please remember, TIMING IS EVERYTHING!!!!!! We would at the least least need a closing above the Daily Bullish Reversals to raise any hope of a further rally into mid January. Failing to accomplish that by Monday, warns of a retest of the lows.

Remember, the technical resistance stands at 257375 in the Cash S&P500 and 2376897 in the Dow. The Daily Bullish Reversals are 2574000 in the Cash S&P500 and 24058 in the Dow.

Be careful for this may prove to be just a 3-day reaction if we do not close above the technical areas and Reversals by Monday.

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