SP-500 DAily

As of now, the RSI has broke it's uptrend line and the StchRSI has broken below the trigger sell point.

SP-500 Daily StochRSI Signal

I have updated the StochRSI chart to include the signal line. Breaking below the horizontal line will be a hint that we have topped.

SP-500 Daily Update

The SP-500 has entered into the low end of it's Fib Resistance Zone by reaching 1770. The zone runs from 1770-1820 and is where I expect a correction to form. As of publishing after the close, all daily indicators are still on buy.

Charts:

 The negative divergence in the +DI has disappeared. The ADX is approaching the zone where a rollover will either mark the top or the top will form within 20-40 pts. of the rollover. This indicator gives better signals when the rollover occurs above the yellow line. I will be watching this daily since we are also inside the FRZ.

 The MACD is approaching the top of it's uptrend channel. I don't really care about that. I want to see it break it's uptrend line or put in a -div.

 The small break in the original RSI uptrend line was exactly what I thought it would be. A pause before a new uptrend line and higher levels. Once the new uptrend line is breached we should be short again.

StochRSI is in bullish above territory and on it's uptrend line. There should now be a horizontal line at the prior low of the StochRSI and I won't short until that is at least broken.

Good Luck!

Jim

SPY Update - Stopped Out

I was stopped out of my SPY short on the close @ 175.95. Flat SPY.

SP-500 Daily UPDATE

The SP-500 is again getting overextended. I looked for long positions back on October 9th and am now focusing on getting some short positions going. Looking across the daily indicators, the SP-500 remains in bullish territory. I did get a short term trend change to down, but short term signals are rarely reliable.

Let's look at the charts.

The ADX is still trending up, which is bullish. The +DI has entered overbought territory. A negative divergence in the +DI would be a great place to get short. Or I'll be shorting a rollover of the ADX which hasn't been entering the 35-40 range recently to mark highs and lows. We must adapt this indicator and jump the rollovers.

 Based on the MACD readings I am adjusting the daily count. The green 3 on the chart will be moved to the right and take the place of the white b. This makes the count an ending diagonal for green wave 3. The green 4 is still in the correct position, and we're now rallying in Green wave 5. The MACD is suggestive of a triangle from June to October. This still doesn't change the count much, but I like having things correct.

The RSI broke the uptrend line already, but at that time I pointed out how is has done this in the past and go on to reach new highs (circled on the chart). It did it again. This time it has broken the new uptrend line. We need to follow this indicator to see if it's going to produce a new uptrend line or not.

The StochRSI is close to breaking its uptrend line, but remains in the "bullish above" territory. Again, we will follow the indicator to see what it has in store.

The Strong FRZ lies at 1770-1820. Expect this area to cap the move up and cause at least a 200 point correction.

SPY Update

SPY has taken out it's previous swing low at 174 so the short term trend has changed to bearish while below 175.94. In other words, I am now short SPY with a 175.94 stop-loss on the trade.

Chart:

DJIA - First Batch of Puts Entered

DJIA ATR is hinting at a high today by dropping down to the 30 level and reversing. The prior times are marked on the chart.

Chart:

Position:

Entered at 10:24 when the DJIA was trading @ 15,514.

ST SPY Update

Last week SPY retraced to the minimum level for what I have labeled as wave B, which was the 23.6% retracement level.

Previous Chart:

I currently have today as wave iv of C. All daily indicators are still on buy. A drop below the 67 sma on the 10m chart will probably be the conclusion of the wave iv of C then a new all-time high will be wave v and shortable. Will keep you posted.

Updated Chart:

USD/JPY ***NEW TRADE ALERT***

I have entered limit oco orders in to sell USD/JPY @ 99.054 with take profit level open for the time being. and Stop-Loss level of 99.80.

The area I'm selling into contains wave 5 = wave 1, wave 5 = .50(waves 1 + 3) as well as the .618 retrace of the move down off the highs. The two fib resistance zones are highlighted in the setup chart.

Setup Chart:

I'll set my initial take profit level at 96.00 the figure, but it may turn into greater downside. Will monitor.

SPY & USD/JPY Intermarket Analysis

SPY and USD/JPY look like they're ready for a pullback after completing 5 waves higher from the lows. In SPY I currently have the rise from the lows labeled as an A wave which means I'm expecting a B wave lower. B waves tend to hold within a 23.6 and 38.2 retracement of the move higher, hence the box location on the chart. We'll monitor how it reacts to those levels and trade accordingly.

Charts: