Loading ...SPX Backtest?
Looks like the SPX and other stock indicies want to backtest their breakout. Today it looks like the SPX is backtesting its breakdown out of the Flag in my first chart.
If we get the backtest that I am expecting, then we need to watch the backtest line closely. Bulls want to see the line become support where price will bounce. Any substantial move below the line would be a false breakout (FBO) and would be Bearish, IMO.
I analyzed the Weekly Dow and I see a triangulation of three trend lines at 17712 (indicated by the blue dot)by September 12th…
http://stockcharts.com/h-sc/ui?s=%24INDU&p=W&yr=5&mn=11&dy=0&id=p94729020049&a=458892233&listNum=15
This isn’t a chart for SPX but the Dow, the chart shows a an IHnS and two Wolfe waves, one big bearish (top rail was back tested today) and one small bullish sitting as the top formation. I think we go higher first (wave projection to 18,700) pulling in some retail to the new bull market just to be fleeced, then we get the Oct. flush to test the old lows.
18,285 should have been bought today, that is my line in the sand.
http://invst.ly/269gu