We are still in a 7-Month Balance as July comes to a close. If there is to be upside continuation, the next target above is a series of closely stacked Highs beginning with 1405.25 upto to the yearly high. 1400 is clearly a key psychological level and will offer some resistance. Looking at the Weekly Bar chart above (and to the right) - the S&Ps broke out above a 4-week balance high of 1376 and closed above the balance area - settling at 1382.50. If this breakout is real - we should see higher Prices next week.
I am showing a Daily Bar chart above (left) from Late April/Early May
that shows a 6-7 day balance area and key references above. The chart to
the right shows the 2 Gaps below and 1376 which was the breakout level
on Friday primarily on news out of Europe amid optimism European policy
makers
will support the euro. On Monday, be alert for a retest
of 1376 and possibly 1373.75. Friday's profile was very stretched out
and left 3 distinct distributions. Opening and building higher to
overlapping higher Value relative to the first distribution is positive.
Re-entering the second (middle) distribution is negative and may be the
first sign of a breakout failure. See Profile Below
No comments:
Post a Comment