The SPX traded through our upper resistance near 2830 yesterday - just by a few dollars. As the resistance levels seemingly is breaking (today it closed above this level, too.), we will give it 3 days. One - the day it breaks. Two - the price trades and closes above the break point for a second day. Three3 - price has now stayed above the breaking point for two consecutive days.
For those willing to take the bullish posture on the break - that would be January 22. For those waiting for confirmation due to skepticism regarding the price action this month - you might consider waiting for the confirmed two days past the break point.
If this broken resistance holds now as new support we will add 35 to the resistance: 2830 + 35 = 2865 for the new, upcoming, short-term resistance.
Craig
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3 comments:
Thank you. Hope you are doing well on your new career. Thanks.
Thanks Craig, that helps!
When this pulls back, not these one day things, what per cent pullback do you think we might get? Or is it too soon to tell yet?
Nobody can say how much the pullback might be. However, there's definitely concern mounting, so we should be conscientious of potential stronger pullbacks.
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