Good morning gentlemen; todays DMS is indicated neutral as measured by DTE- and calculated by DSI- todays DMP= .72/.78- *LOW #’s indicating 2:1 sell/buy signals-
Todays DMP is VERY important because it give us a look at the algorithmic configuration of the SPX/MKT to determine if the so called- “B/O” has sustainability/follow through OR is simply at another exhaustion TOP-
Given the current DMP- our conclusion is that this move has limited follow through expectation and is likely the 3rd drive up in the topping process we’ve highlighted over the last few weeks.
SPX R2=2873-74- Technical/structural/algorithmic resistance- most likely the extent of the UP side within the current S/T cycle- trader/PM’s are advised to lower long exposure, and consider a tactical/technical hedge here.
SPX R3=2878-79- an outlier level- lower probability- would fire another bullet here- “all-in” level on short side.
Although were currently neutral on a daily basis based upon last week’s reversal, we continue to be bearish from a macro perspective and our model will turn bearish once again within the “daily’ interval starting tomorrow- 8.22-24.18-
Traders/PM’s are advised to use any move to R2-R3 to once again establish a SPX/MKT short position over the next few days. The SPX/MKT is the process of putting in a macro TOP that will likely establish yet another upside trading range H- and set the SPX/MKT up for a move back to FV- within macro/monthly/weekly intervals/cycles.
Technical Analysis Specialist-