Tues July 18, 2017.9.55.pm.edt
Well, Shorts got burned yet again as they continued to try and short a dull market into few sellers on bad news out of Washington (McConnel & Co Debacle” (Health Care Bill Failure) as the index didn’t care beyond banks who gloomed today and techs who mooned! Trust, ,me when I tell you all this. I have seen markets like this before and the top doesn’t come until every preconceived short who thought they were shrewd in picking a top covers! True, the index has ZERO business being up at these levels.. It should be at the most 2000 here not nearly 2500 and it will soon see those levels once an intrday topping at 2502 is most likely followed by epic near historic intraday selling and a drop that may even take out 2453 comes the same day! .But, that’s yet to come.. for now we retrace the daily range on the index by 49% and continue to scale in to the index at those levels sub 2500! That means today’s range of 2450-2460 most likely makes Friday’s break out new all time high of 2457 intraday support on most likely a higher open on Wednesday July 19, 2017. Right now support for the index remains at 2422 its 20 DMA and as my daily SPX chart that has been dead on since May 25, 2017 when I created it shows the bottom of the channel to 2502 now 2422 not 2405 as it was the day before the June 2017 labor report was released less then 2 weeks ago and the index saw 2409 as it held 2405 channel low.