Daily chart shows bullish divergences on the RSI and MACDH, warning of further rally. The aggressively bearish Elliott Wave count I had been showing does not seem to be working out, and now it appears that the move lower from the April high could be complete. I may post an updated 4 hour chart in coming days to illustrate how the decline could be complete, though I am short of time today. Hint: there are five waves up from the low. Trading edges often fail, and I don't mind this as failed edges are powerful edges themselves. A problem arises if trading edges are interpreted as forecasts, something they are not.
Thursday, 2 July 2015
On Wednesday the cash S&P rallied to retest the neckline of the illustrated Head and Shoulders top.
The futures have rallied during Asian and European trade, putting a bullish failure of the H & S top on the cards. For now, simply something to consider. Trend line resistance on the futures is very nearby. Let's see.