Kissed the gap fill, held the parallel, can we still confirm?
In this video I go over the SPX my levels of resistance and support and we go over the evidence in the charts that suggest we could still get one more shot to confirm. If we fail to confirm for the second time that would be bearish and would likely signal a move lower soon. But if we do confirm then we're likely to get a new all time high on the spx.
We study the 10 min chart and the price action was quite weak! Yes we had a nice pop but that was all based on news and also we didn't see the high conviction buying again. If it weren't for that news we wouldn't of held the parallel! That's telling us something to keep in our minds. But the fact is we held the parallel for now we just keep following our rules like I stated in the videos , so long as we don't close back inside the parallel it still has a chance to confirm and its not a failed brake out until proven other wise by closing back inside the parallel.
Remember we also have multiple factors that say we can get our market correction later. The 10 year bond had a confirmed break out! which tells us it wants to go higher BUT for now in the short term its over bought and odds favor a pull back to make a retrace which would = a bounce on the markets. If we do get the bounce its the last chance the SPX will have to confirm. Lets watch this market closely.
Another negative factor that I didn't go over was the RSI wedge pattern we have .Go watch our previous videos for more details on that matter and the stochastic RSI also wants to cross down soon. These are just bread crumbs warning yellow caution signals to keep in the back of our minds for now.
source https://www.tradingview.com/chart/SPX/scLHrH5a-Kissed-the-gap-fill-held-the-parallel-can-we-still-confirm/
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