S&Ps take out August low

January 20, 2016 10:46 AM
Post-open Review... Don't even think about it.

Post-open Review... Don't even think about it.
 

Opening blip-up snaps back down into plunge.

Pre-open firming had been testing 1846.00 as resistance. Recovering it through the opening 15 minutes of volatility would have made bouncing into yesterday's range likely.

Quickly reversing back under 1846.00 effectively shut that door.

Testing 1840.00 as support produced another blip-up, which peaked within four minutes instead of within three minutes. But its reversal down has extended to sharply lower lows attacking 1817.00. Every bounce limit has held its three-minute test.

The next lower objective is now just two points lower, a retest of October 2014's "V" bottom low at 1815.00 (see chart). Its test isn't necessary to produce a bounce -- one-minute RSI is diverging positively, and there's a running correction that can be tested up to 1835.00-1836.00.

Bounce, or not, nothing requires 1815.00 to hold. And there is a not much support nearby below it.

 

About the Author

Rod David develops analytical techniques that are designed to efficiently identify targets and turning points for any liquid stock or market in any time frame. He primarily analyzes S&Ps, generating several round-turn candidates daily. Rod publishes "Trading Plan" and more each session at the blog http://IfThenSignals.com.