SPX SPY SP1! SPXUSD SPX500USDThe downtrend on the S&P 500 hourly futures in place since Mar. 13 saw a failed attempt to establish a fifth wave on Mar. 15. Since then, the S&P 500 futures has moved sideways in a tight range between 2745 and 2760.
Such a contraction usually presages a significant impulse move. The question is: in what direction is it more likely to go? With the 50 MA now angling up, the probabilities favor an expansion out of the current range to the upside. So does the fact that the S&P 500 futures have tended to hang within the upper range within the Bollinger bands. Momentum has also trended up with the recent contraction in volatility.
A change in the trend to up will be more clearly signaled by a widening in the Bollinger bands combined with price touching or exceeding the upper band line. I'll then be looking for a pullback opportunity to enter a long position.
Such a contraction usually presages a significant impulse move. The question is: in what direction is it more likely to go? With the 50 MA now angling up, the probabilities favor an expansion out of the current range to the upside. So does the fact that the S&P 500 futures have tended to hang within the upper range within the Bollinger bands. Momentum has also trended up with the recent contraction in volatility.
A change in the trend to up will be more clearly signaled by a widening in the Bollinger bands combined with price touching or exceeding the upper band line. I'll then be looking for a pullback opportunity to enter a long position.
