Hi Everyone, My prayers go out to the families at the school shooting yesterday. What is going on with society these days??
Yesterday I pointed out the tale of two patterns.
Well, the bearish head and shoulders were triggered and we got a very fierce drop shortly after.
But as soon as we saw the spx head into the right shoulder zone (drop to form the right shoulder of the inverted head/shoulders) buyers stepped in out of the blue and we saw the spx rally quite nicely.
It did still close red, but that inverted head/shoulders pattern is still in play.
I honestly can’t think of a catalyst to spark the bulls, but when there is short squeeze kerosene poured all over the campground, it doesn’t take much to spark a forest fire.
There is NO catalyst for the long-term bulls right now. Their best hope is the market drops so hard, the Fed may not raise rates as much. But with Joe & Co. trying to destroy our fuel industry, inflation will soon be higher than his approval ratings-if they aren’t already.
For today, I remain CAUTIOUSLY optimistic that the bulls will try and defend support and press higher.
That outlook could change in a flash, but for now, I am looking at the short-term patterns/momentum, which is suggesting a higher-for-a-trade.
The bulls need to get a price above 3955 for a reaction trade up to the neckline of the inverted head/shoulders (3997-ish).
The bears need to get the price below 3873 to see downside momentum pick up and possibly put an end to this bullish pattern in place. Let’s see what plays out today. -Gary Dean
SPX Hourly Technicals
Divergences: No Divergences
Resistance Pivots: R1-3955 R2-3984 R3-4015
Support Pivots: S1-3922 S2-3904 S3-3892/3875
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