The Slingshot S&P
Back-and-fill below 830 may mean an upcoming, bonafide extension.
The market certainly "knows" the 830 S&P level, doesn't it?
It's backed off from just below that level 3 or 4 times now.
However, oftentimes when a stock or index stops shy of idealized resistance, it's mustering strength to slingshot over a key level, whereas when a stock or index knifes directly through a proposed level of scrimmage, the spike defines a meaningful high.
In other words, the back-and-fill below 830 may mean that the next time through will see a bonafide extension. Offsetting the October intraday and closing lows of 840ish and 849 would project to the next level of 90 degrees up or 890 - which is a full 2 revolutions of 360 degrees up from the 667 SP low. If that occurs before quarter end, it will turn the Monthly Swing Chart up on trade above the February high of 875.
A move by the S&P back below 814/815 and a break of the 50-period moving average on the 10-minute chart suggests that yesterday's midday decline may have been an A leg down.
And the snapper that's continued into this morning - a B leg up to be followed by a C leg down that flushes the 50-day moving average.
Jeff Cooper's Daily Market Report
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