Today was yet another cloud walk. SPX made a HH and HL and closed in the positive that in itself is positive for the markets for tomorrow. SPX opened higher 6 points and stayed up all day to close plus 25. It was the eighth biggest daily gain for this year. The highest point gain day was 49 points on 10th of May. Generally there has been follow thrus for next 2 days. They also tend to come more at the beginning of the month than in the middle or end. December is one of the best months in the market. But this market has not followed the "generally" trend. Still these are positive signs.
Next I am focusing on RUT today. I use TNA on the hourly and RUT on other time frames. The chart on the right is TNA.
It is in a solid channel ging up steady as it goes. Sometimes to the top gets hit falls own to the middle and sometimes to the bottom and rallies to the middle where it seems to ride. I believe it will hit the top of the channel now around 66 before it comes down.
The next chart is RUT daily on the left. May be I am drawing the channels to be in symmetry This also is at the middle line. There is usually a little turbulence at the middle line on the daily chart. Also today's action was little too much optimism which will be corrected. This chart tells me if there is a hit I should look at other signals and get ready to buy.
The weekly chart is on the right. It is a lot of GANN. The downward angles have all elapsed after RUT crossed the 1x8 line. There fore unless we form a new down trend some time in the future we are in an up trend and that is a totally different game. Simply put if and when there is a pull back it is an opportunity to go long. There is a 2x3 line that I use (not drawn) and RUT is bumping against it. And with a middle line from daily there could be a drop to buy.
On the left is the monthly chart. RUT did not close in the negative last month SPX did. It is a very bullish looking chart. Quite a ways above the middle line and RUT has recovered more than 75% of the decline. This one is scary to the upside. If I do the woo doo math the top is around 1100 in about 18 months or so. That is a long way but this a monthly chart and I do not use it for short term trades. That is a job for DOMA 77 on the hourly DMRM and other signals.
Tomorrow is another big GANN day. 216 degrees is is considered a good point for market direction changes. That GANN emblem is below.
I am mildly is bullish but not enough to buy. I will wait for hit to buy.
Once again thanks for reading my blog and offering your encouragement.