We are seeing the bulls try for another gap higher open this morning.
Will they be able to hold the gains this time?
I am still on the side that a short-term low is in place at the 200-week mark, where the long price was suggested (spx 3638).
We need to manage the trade accordingly and remove any risk with a stop at entry.
Start to layer out once we see the spx trading near the 3800, which would be a 160 point spx profit.
I still wouldn’t be surprised to see the spx trading closer to the 4000, just to close some of the open gaps, before heading lower again.
Once we lock in some profits, we could just run with stops and see where this ends.
For now, let’s see if the bulls can run higher with this morning’s gap higher open.
For today, the bulls need to get the price back above 3707 for a reaction trade up to 3799/3850.
The bears need to get the price below 3660 for a reaction trade down to 3615/3580. -Gary Dean
SPX Hourly Technicals
Stochastics: Over-Bought-ish
Divergences: Bullish Divergences (maybe playing out)
Resistance Pivots: R1-3707 R2-3735 R3-3790
Support Pivots: S1-3660 S2-3640 S3-3615
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