Cobra's Market View Private Messaging System shows:
Key day for bears according to what happened in the past the 2nd day after a Major Accumulation Day.
Could be Head and Shoulders Top or Bullish Falling Wedge in the forming.
SPX daily stopped right at the Bearish Rising Wedge resistance line.
|Trend||Momentum||Comments - Sample for using the trend table.|
|Intermediate||Down||Neutral||Intermediate sell signals still need further confirmation.|
7.0.A Major Accumulation Day Watch, as discussed in the weekend report, down 2 days in a row after a Major Accumulation Day usually means a tradable top (See dashed red lines), so tomorrow is very important for bears.
Simply from the chart pattern point of view, very likely the open tomorrow would determine the fate of bulls and bears. 1.0.3 S&P 500 SPDRs (SPY 30 min), a gap down open, then probably a Head and Shoulders Top is in the play. 1.0.4 S&P 500 SPDRs (SPY 15 min), a gap up open, then could be a Bullish Rising Wedge in the play.
Right now, looks like bears have a little edge. Because, firstly, as mentioned in the After Bell Quick Summary, whenever CPCE <= 0.56, most likely a red close the next day, and secondly, SPY has been opened with an up gap for 3 days in a row, so logically the chances for it to open with yet another up gap the 4th time is relatively low.
0.0.3 SPX Intermediate-term Trading Signals, just want your attention to this chart, SPX was rejected right at the Bearish Rising Wedge resistance line, and the whole chart has lots of negative divergences, which I still have difficulties in seeing it as bullish (so again forgive my bearish bias, as I swear I’m only telling the truth… LOL)