Good morning : todays DMS is indicated bullish as measured by DTE- and calculated by DSI- todays DMP=.94/.83 * Not great algo #’s but the TIME schematic does improve significantly starting today…
Last week we mentioned the MKT would be vulnerable to lower prices into this week-
The S/T-“Daily” market schematic starts to turn bullish today as a “Major” daily BUY signal fires (10.12.18)- indicating a completed S/T corrective cycle that started late Sept.- This of course within the context of a relatively bearish “macro” profile for the SPX/MKT-
SPX S1=2874- first level of T/A support-would use this level to mitigate MKT related short exposure.
SPX S2=2865-67- most likely holds any weakness today. Would use any move to this level to establish a MKT long position lasting several day-week.
SPX S3=2844- most likely off the table at this TIME.
Traders/PM’s are advised to temper downside expectations for the MKT and assume the technical texture of the MKT begins to turn bullish stating today. The TIME signature of the MKT coupled with location of price relative to TIME, and over sold VOL metrics combine to change the technical texture of the MKT to bullish from neutral-bearish.
Although some downside risk remains, it appears that the LOW put in this week will probably hold and likely turns the MKT higher in S/T-
**I like the SPX/MKT starting around 11:18 am-
Technical Analysis Specialist-