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Stocks Back to Highs! Will they Breakout??Stocks had a little flash crash that was immediately bought back up. Currently, the S&P is sitting at highs. After a crash like that it was lucky to get bought back to highs let alone break out again. The Kovach OBV has run out of steam and is flat at current levels. This is not a divergence quite yet, but it does suggest stocks should at least range a bit before another breakout. It could go either way at this point. Watch if the S&P tests and rejects highs at 3867. If it keeps rejecting highs, it will constitute a bearish signal. If we are able to breakout, 3887 will provide resistance and is our next target. Yesterday, 3792 provided beautiful support and it is no accident that this is one of our significant levels. It is a Fibonacci level and a technical level. Watch for it to provide support again if we have another dump
FX:SPX500
by quantguy
3
Stocks Ranging Before Another BreakoutStocks are ranging between 3825 and 3867. These are both levels identified by us, in addition to the ranging. Since it is Monday, we are unlikely to see any significant moves, so anticipate the ranging to continue, but we will know more details towards the open. The next target is 3887. We should easily hit this with another burst of momentum. If we retrace, we have some options for support from Fibonacci levels below at 3811, 3800 (also a psychological level), and 3792, which coincides with a technical level. The Kovach OBV is strong, but has recently flat-lined, confirming the ranging behavior.
FX:SPX500Long
by quantguy
Stocks Reject Highs. What's Next?As we told you yesterday in the reports, stocks retraced to 3825. This is a strong level of support. Both Kovach Momentum indicators are solidly bearish, leading us to think the pendulum may swing back soon. Additionally there is a cluster of green triangles on the Kovach Reversals indicating that we are seeing some candlestick reversal patterns. If we do see a bounce, the S&P will likely feel out the range between 3825 and 3867. If we are wrong watch for 3811, 3800, and 3792 to provide support.
FX:SPX500Long
by quantguy
Stonks Make New Highs!! What's Next??As you all are undoubtedly aware, stocks made new highs yesterday. They met resistance exactly at 3856, the level we called out for weeks. Finally they inched past this level to 3867, where they are currently facing resistance. Almost certainly they will break out higher. They could range to feel out this new price territory first, however, so don't get too excited. The S&P is at highs, so jumping into a long trade would definitely be FOMO. It is certainly possible that we could retrace to 3825. The Kovach OBV is very strong, so we are in buy on dip mode. Nested Fibonacci levels give us a price target of 3887, and then 3935.
FX:SPX500Long
by quantguy
S&P Bull Wedge Forming?Stocks bounced pretty hard off lower levels, but are still having issues making new highs. The level 3758 provided support as we said it would. We blasted through the next level 3792, which provided little resistance. It will provide support now. We should expect more resistance at all time highs. It will take a lot of momentum to break through and establish new highs. However we do appear to be in the midst of forming a bull wedge pattern, so chances are stocks are bottling up for a breakout. Consider dips as buying opportunities to accumulate a position before the breakout. The next target is 3856.
FX:SPX500Long
by quantguy
$JSEANG Anglo Gold. Bear flag ?Anglo gold has been moving in a downtrend in tandem with the Gold price. Currently it looks like it's building a bear flag. If this bear flag breaks to the downside, 26700 could become a target. Cautions approach for new longs on this one. A downtrend break would happen in tandem with the gold price that will break out of it's down channel. Keep an open mind on this one. No position. If you're planning to go short, then wait for the bear flag break confirmation.
JSE:ANG
by KoosKanmar
$JSENPN Naspers. Top to channelNaspers is trading in a defined channel with an uptrend. It has now reached the top of the channel once again. It would be interesting to see what happens at the 345000 level, but my suspicion is that resistance will hold and we will move down to test the bottom of this channel once again around the 300000 level. The all share index of which NPN forms a large part has move too far too fast in my opinion, and if the market takes a breather it won't be a surprise. No position.
JSE:NPN
by KoosKanmar
S&P Breakout or S&P Retrace??Stocks dipped, but nowhere near to the extent we were anticipating. A 'healthy' correction would put us at 3758 or 3737. All we got was 3792. We still anticipate stocks to break out to achieve new highs sometime soon, perhaps even today. Though we are below 3792 at this point and this will provide resistance. The Kovach OBV is inching up, suggesting that we should prepare for a breakout. However the S&P may have one final squeeze left in store for us, so it would be wise to be patient and wait for a better dip.
FX:SPX500Long
by quantguy
New All Time Highs for Stocks??The S&P dipped, but not nearly as much as we anticipated. It is still holding the range 3792 to 3825. This is a very narrow range for stocks and we anticipate a breakout today either way. A breakout to the downside seems a lot more likely, since the Kovach OBV is not registering much momentum. If so, consider 3758 or even 3737 to buy back. However, it is hugging the upper bound of the range, which could suggest a breakout especially if we see momentum pick up toward open. If that happens, 3856 is our next target.
FX:SPX500Long
by quantguy
Stocks Pausing Before New HighsStocks are ranging at highs, caught between all time highs, a technical level at 3825, and the nearest Fibonacci level, 3784. We are seeing some consolidation here as stocks find footing. Our target still remains 3856. Beware of some retracement first, even a 50% retracement would still be considered bullish. That would put us at 3726. There are several levels of support before that. The Kovach OBV is a bit flaccid, indicating that there may not be as much momentum to this rally as we'd like.
FX:SPX500Long
by quantguy
1