This is nearer to our forcast
"Above is the 60 min. chart of the SPY. The first of June the SPY broke above the 93 level (and noted at the time
of the 6/1 breakout that it was a false break because volume did not confirm) but failed to hold that high and fell
below 93 and created a bearish âUpthrustâ. The SPY could be forming a bearish Head and Shoulders top and the
Right Shoulder is being developed now. A lot of the time there is symmetry in time in that if the left shoulder
took three weeks the Right shoulder should also. The Left shoulder did take three weeks and therefore the right
shoulder may over between 89 to 93 for another week or so. A Neckline break near 89 with a Sign of Strength
would confirm this pattern and give a downside target to 82 and a 50% retracement of the rally from the March
low would give a target to the 81 level. Therefore we will be watching that region for a bullish setup. We are
short the SPX at 883.92.
Above is an intermediate term look at the SPX and this indicators on this chart have turned down.
Bottom window is the RSI and it has had a bearish crossover of it 17 day EMA. Second window from
the bottom is the NYSE Summation index and it is on a sell signal. Third window from bottom is the
NYSE Bullish percent index and it had a bearish crossover. Fourth window up is the MACD and it have
a bearish divergence at the SPX high and has since rolled over to the downside. Top window the
Cumulative Advance/Decline line and it has a trend line break and gave a sell signal. Because of the
indicator mentioned above this current decline could run into July or August."
"Above is the 60 min. chart of the SPY. The first of June the SPY broke above the 93 level (and noted at the time
of the 6/1 breakout that it was a false break because volume did not confirm) but failed to hold that high and fell
below 93 and created a bearish âUpthrustâ. The SPY could be forming a bearish Head and Shoulders top and the
Right Shoulder is being developed now. A lot of the time there is symmetry in time in that if the left shoulder
took three weeks the Right shoulder should also. The Left shoulder did take three weeks and therefore the right
shoulder may over between 89 to 93 for another week or so. A Neckline break near 89 with a Sign of Strength
would confirm this pattern and give a downside target to 82 and a 50% retracement of the rally from the March
low would give a target to the 81 level. Therefore we will be watching that region for a bullish setup. We are
short the SPX at 883.92.
Above is an intermediate term look at the SPX and this indicators on this chart have turned down.
Bottom window is the RSI and it has had a bearish crossover of it 17 day EMA. Second window from
the bottom is the NYSE Summation index and it is on a sell signal. Third window from bottom is the
NYSE Bullish percent index and it had a bearish crossover. Fourth window up is the MACD and it have
a bearish divergence at the SPX high and has since rolled over to the downside. Top window the
Cumulative Advance/Decline line and it has a trend line break and gave a sell signal. Because of the
indicator mentioned above this current decline could run into July or August."