Short Term Trading Member Forum

[techcharter]

SPX Takes A Rest on Monday.

The SPX has rallied for 2.5 days within a well defined up channel. Around 1 PM Friday, that channel was broken to the downside. So far this is the longest rally with no pullback since the March low last week. This is a likely candidate for a wave 3, with several degrees of wave 4-5 to follow in a choppy advance through next week.

I calculate a near term SPX target of 1357 by doubling the distance from the March low to the middle of wave 3. While this target implies the February highs will be broken, the slope of the trend channel of smaller degrees is less than those of larger degrees. This rally should flatten and roll over. Not long term healthy.

http://bigcharts.marketwatch.com/advchart/frames/frames.asp?symb=spx&time=&freq=