1504730531.jpg

DAILY MARKET RECAP Wednesday September 6, 2017

Posted on Wednesday September 06, 2017

Key Developments :

 

  • 247.19 cup/handle target acquired.
  • Minor H&S top shows up into close after acquiring yesterday’s target
  • Big picture still neutral until price action improves. (trading it both ways)

 

Yesterday’s cup/handle target acquired at 247.19 which has now formed a small H&S top. below the 61.8 fib retrace.

Big picture, last week was a lower high and we are trading inside it currently as the market creates another trading range.

I still believe it is irresponsible to recognize this risk.

IWM -> The bull and the bear case.

 

The Bottom Line:
From and S&P perspective, we are still trapped in the trading range since acquiring our 4 year price target at 2485. To the right of that target, we can make both a bullish and bearish case technically, neither of which has signaled as of yet. 

The bullish case:

1) We are still in a long term uptrend.
2) Potential inverse H&S in larger SPX right shoulder.

The bear case
1) 4 year price target acquired.
2) Lower high below 2485 target after retest of target finds sellers.
3) Shooting start candle on daily.
4) Potential H&S top targeting a 5 % correction which we haven’t had.

For me, I remain very neutral. It’s irresponsible to call a top for no reason, but to not recognize that we need price action to carry stocks higher and none exists or is in motion yet on any time frame, means neutral.
Last week we had some intraday patterns to rally the tape. We saw the same off Tuesday’s rally. But now we have nothing and instead have a H&S top on the lower time frame. The market still hasn’t decided where it’s going next so we must continue to monitor price action and let it lead the way. I can make a case either way here which suggest neutral. The same stance I had starting on 8/8 when the 4 year target was acquired. I have missed out on nothing except whipsaws in both directions.

CMG is holding some big support levels. I like this one for a trade.


 

The above is  be used for Informational purposes only. The charts are fact, however my interpretation is an opinion which I am sharing with readers. None of this is a recommendation to buy or sell anything. You must do your own due diligence. 

Learn to Find Huge Winning Stocks FREE
Take my FREE 5-Day email course and I will teach you how I profit

Leave a Reply

Your email address will not be published. Required fields are marked *