Market Weekend Update - Short Term By: Tony Caldaro | July 21, 2018
Counting the SPX advance from the April low at 2554 to the June high at 2791 as a leading diagonal in the SPX/DOW, or the pattern presented on the hourly chart in the SPX, leads to the same general conclusion. Minor wave 1 completed at SPX 2791, and Minor wave 2 likely ended at SPX 2692. Minor wave 3 would then be currently underway.
Since Minor 1 displayed a lot of internal choppiness which fits a leading diagonal scenario. Minor 3 should shed that choppiness and be impulsive. So far we are seeing that unfold. From the Minor 2 SPX 2692 low we see three waves up: 2743-2699-2817 so far. The first advance from SPX 2692 looks impulsive: 2711-2699-2724-2716-2743. And the advance from SPX 2699 looks impulsive too: 2737-2711-2796-2771-2817. To increase the impulsive scenario probability we would need to see a pullback of about 30-40 points, and then a rally to higher highs. Then this advance would not only look impulsive, it would be impulsive. Short term support is at the 2798 and 2780 pivots, with resistance at the 2835 and 2858 pivots. Short term momentum ended the week oversold. Best to your trading!
News 
Market Data 
Discover 
