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CURRENT MARKET TREND: Up 5/27/16 @ 2090
Stop-loss 2026

Tuesday, May 8, 2012

Long as of 1350 and buying below

The SP-500 put in a good reversal off the lows today, and although the daily charts are still in bear territory, the hourly charts are saying bears should show caution or get bullish quick.

The first chart consists of the count and support level I had yesterday going into today. Was short at 1374 and got long at 1350, but thought they'd dip it under 1350 to suck some more bears in, which happened perfectly.

Now let's look at some indicators within the hourly chart.

The ADX rolled over and the -DI broke it's uptrend line. I usually short right when the ADX rolls over when it's over 40, but we didn't have a completed wave count down yesterday. We do today.

The EW Oscillator has put in positive divergence on the c wave compared to the a wave:

Similar to the EWOsc, the MACD has put in positive divergence from the a wave low and tested breaking out of it's downtrend channel at the end of the day:

The Hourly price is now above the 10 hour EMA and the 10m chart is above the 67sma, both of which are bullish.

Conclusion: We may have one more low to come under today's low, but I'll be buying it.

Happy trading all!

Jim Genosky