The range on SPX was 9 points and it made a HH and HL and closed in plus. All positive signals for tomorrow. RUT closed in the positive as well. It had a HH and HL. It has closed up for 4 days in a row something we don't see too often. Only 8% of the moves are 4 days or higher in a row. None the less RUT is only 10 points from the all time high of 856. I believe it will be taken out. The interpretation of the unemployment percentage was at best medium. While we saw new highs it wasn't a huge big day. The reaction was not ice cold not very hot nicely warm. The trend is till positive
This is my hourly chart of SPX. The final decline we had was a triple top decline or H&S decline from 1332 to 1249. The red and blue rectangles. The rally from 1249 is extremely well behaved inside the channel. I believe it is likely end near 1250 at the right corner of the square at the end of the diagonal. My count is we are already in 3 of 3. having finished 1 at 1344 and 2 at 1249. This rally from 1249 to 1350 is 1 of 3 and 2 of 3 will be limited to 1320.
This is Gann angles on the hourly. This is a short term focus chart but lines up with the daily chart from 666. 1010 low is the 2 and 1010 to 1344 is 1 of 3 and to 1249 is 2 of 3. This chart is little bit clearer. The numbers in italics inside blue rounded rectangles are the moves. This chart even more bullish. But highlighting small declines is not the purpose of this chart. SPX will go and recapture the 3x1 line and it could creep along on it for 150 points. I will talk about that more as time passes on.
This is an important chart. It is daily. So far SPX is in a clear cut channel. If the bottom of the slow blue channel is broken at 1200 or so that would be cause to worry other than that it made a low at the bottom of the fast brown channel I think after a thrust tomorrow or Tuesday we will get a shake out to drop the speculators off and to give the bears something to cheer about . And then there will be ignition and we will take off. There is a distinct probability that there will be panic buying coming very soon. I do have a calculation that shows 1605 by Oct 23rd.
All said I am very bullish and can't wait for a pull back to buy. This is just like July of 2008 in Reverse.
This IMO is the time to get the multiples up and not lose money speculating on the declines.
Thanks for reading my blog.