The uptrend is in danger

Kami

In the next a few days, the bulls need to work hard to defend the uptrend.  Today the market closed right on the edge of the uptrend line which is also the MA20 line and the 880 level line support.  However, the market is not that oversold thanks to the consolidation in the last a couple of hours.  So there is room to go down further.  

BPSPX has given the sell signal (MACD as well but need microscope).  NYMO, NYADV, NYA50R have broken down.  Although some of my market top signals still need to confirm, in my opinion, the market reached its peak on May 8.  The remaining question is whether the market rebounds from here or rebounds from 825-830.  If it is the later, 880-900 would the ceiling again for a long time.  If it is the former one, the market may linger around 870-930 for another 6-8 days and go south after the Memorial Day.  Personally I prefer the former because I have not loaded much shorts yet.  

moon2966

gege88

Kami

It looks like the market goes as I wished (the former scenario).  So let us wait until Friday for short entries.

Kami

The market dropped to 900 and MA200 of 30 min and it is a little bit oversold so tomorrow morning it may bounce back a little bit.  Whether it can continue to go up depends on how hard bull MM wants to try.  Personally I think it will drop further in the next a few days but could be again held at 880-890 level.  The market may still be lingering between 870-930 for a while.  If tomorrow it reverses, then the market will test 200MA in the next a couple of days and go south after the Memorial Day.  If tomorrow it continues to go down, then I expect (and wish) it go to 880 first and there may be another leg up to finally push SPX to above the 200MA (around June 5-8 which is the 3 months anniversary of this uptrend).  I have not loaded too much shorts yet so hopefully the market goes as I wished.