SPX bounced off the lower red channel line. Last Wed. the front page of the USA Today said that we have had 20 up Tuesdays in a row. Will it be 21? Usually when everybody knows about a pattern it stops working. I am sure it will soon, but maybe not tomorrow. This was a very weak bounce. The breadth did not even get positive. If the market is going to make a low here it has more work to do. Lets zoom in to the 60 minute SPY chart.
SPY hit the hourly 200 SMA this morning and bounced. There is a little more room for the bounce to continue tomorrow up into the area of the 60 SMA. Every other day lately has gone in a different direction. Either that pattern will break tomorrow or the up Tues. pattern will. Regardless of what happens tomorrow I don't see any sign we have seen the low yet.
Chart practice has been updated with IRM the stock tonight.
http://traderbob58-chart-practice.blogspot.com/
Bob
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