The /ES is +27 as I type and everything is going as planned.
The 200-week MA was a perfect entry, I/we have already locked in 140 spx points for 1/3 of our position and our stop is at entry, so we have no risk.
I think based on my expertise, we are only in the middle innings of this dead cat bounce.
July looks like the time period where volatility will pick up again and also when this bounce will end.
The peeps that missed the 20%+ decline started shorting too early and they will be the reason this bounce goes much further than many are expecting.
Once we see them scrambling to cover their losing short positions, that will be the time to look to start building our short position.
That is why monitoring sentiment is such an important piece of our predictive analytics model.
It lets us see when the majority (who will be wrong) are moving to the other side.
The consecutive 0% bullish sentiment readings as we were heading into support with buy signals, made the current trade easy.
Nothing has changed with the bigger picture, we will take out the lows made last week.
But for now, enjoy the short squeeze rise on the right side.
For today, the bulls need to get the price back above 3841 for a reaction trade up to 3861/3895 (take another 1/3 off near 3900).
The bears need to get the price below 3784 for a reaction trade down to 3740.
DON’T CHASE UP HERE!!
I AM SEEING SOME SELL SIGNALS SHORT-TERM! -Gary Dean
SPX Hourly Technicals
Stochastics: Over-Bought
Divergences: No Divergences
Resistance Pivots: R1-3841 R2-3861 R3-3895
Support Pivots: S1-3784 S2-3740 S3-3722
Extreme Investor Network has partnered with sentimenttiming.com to bring you stock Market Trading Advantages.
Want to know exactly when the next turn dates are weeks in advance–try our premium service for 2 weeks free (it moves to $149.99 per month once the trial ends) Use coupon code: 2 weeks Subscribe Now (If you have ANY issues subscribing, please email me at [email protected] and I will fix the issue. Gary Dean -)
