So, I did forget that the markets were closed yesterday as I put the morning notes out.
But the gains we saw yesterday have extended and the 3638 suggested long entry, should be close to 100 point spx gain near the open if the strength holds.
I am NOT seeing any immediate sell signals on the /es, which is +62 as I type.
Sentiment was at extreme bearish levels, the 200-week ma was at 3638 and we had buy signals on all the charts we watch.
That is the ONLY reason we started looking for a short-term low and a bounce that may close some of the gaps above.
It has NOTHING to do with our long-term view, which is looking lower throughout 2022.
But for now, everything within our predictive analytics model was screaming buy and we can only trade what is in front of us.
My upside targets for this bounce: 3800-3965 and 4082.
As we always do, scale-out at pivots and raise stop from entry so we have zero risk with this trade.
For today, the bulls need to get the price back above 3735 for a reaction trade up to 3762/3809.
The bears need to get the price below 3690 for a reaction trade down to 3665/3640. -Gary Dean
SPX Hourly Technicals
Divergences: Bullish Divergences (playing out)
Resistance Pivots: R1-3735 R2-3762 R3-3809
Support Pivots: S1-3690 S2-3665 S3-3640
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