Last week we discussed the possibility of the market moving towards and breaking the 2800 level which would confirm a 100% retracement back from the recent move lower.
Scenario A: The Linear Regression is still showing a positive moving mean, which is encouraging for the SPX. In Scenario A, we could see the market continue to move towards it's mean, which also suggests a break above the 2815 level. This is significant because of the previous two highers were created at this level. Should it break, this shows that the market's buyers are still in control. With the NFP this Friday, plus other economic factors, we could see a positive run for the SPX this week. This will be reaffirmed by the break to the upside of the Parabolic levels too.
Scenario B: Market is held tightly at the 2815 level and retraces downwards again towards 2740, 2720. Should this happen it would mean it's broken out of the Linear Regression channel and broker the Parabolic levels. Should the HMAs crossover to the downside, this too encourages the Scenario B to hit the mentioned levels.
This analysis is for informational purposes only and is not a recommendation, buy/sell signal, or advice in any format.
Scenario A: The Linear Regression is still showing a positive moving mean, which is encouraging for the SPX. In Scenario A, we could see the market continue to move towards it's mean, which also suggests a break above the 2815 level. This is significant because of the previous two highers were created at this level. Should it break, this shows that the market's buyers are still in control. With the NFP this Friday, plus other economic factors, we could see a positive run for the SPX this week. This will be reaffirmed by the break to the upside of the Parabolic levels too.
Scenario B: Market is held tightly at the 2815 level and retraces downwards again towards 2740, 2720. Should this happen it would mean it's broken out of the Linear Regression channel and broker the Parabolic levels. Should the HMAs crossover to the downside, this too encourages the Scenario B to hit the mentioned levels.
This analysis is for informational purposes only and is not a recommendation, buy/sell signal, or advice in any format.
