Did the Bulls wrestle the ball back to their court?
On Monday 18 Oct 2021 4.31pm, I emailed Clients my latest post titled 'Did the Bulls wrestle the ball back to their court?'
S&P500 Index (SPX), Daily, 6-months
As this is a short mid-month update, pls find below the full transcript of the writeup:
A quick follow-up note to the S&P500 Index (SPX) ongoing correction and rebound:
. 1. Ref my 27 Sep writeup, I mentioned I would prefer to see one more low: '..I would really prefer to see one more low as an Elliot C Wave down...(with a) potential target will be around 4235+/-..' SPX did hit a lower low at 4278.94 on 4 Oct, but is 44 pts away from my 'preferred' low. . 2. In just 3 days last week, SPX price action has swung to other side of the fence and is now strongly in the upper segment of Bollinger Bands (BB).
As mentioned in the same 27 Sep writeup, '..if price action breaks above (BB midpoint) convincingly, the overall bearish angle may quickly turn into a neutral or slightly bullish slant..'
. 3. Thus this 1 - 2 weeks we may have to watch carefully - if price action keeps getting defended at the midpoint of Bollinger Bands (currently at 4380+/-) on every weakness, then it is possible this Correction's bottom may have been seen and Clients should buy on pullbacks thereafter. This runs parallel with my original view that the current correction is just a garden-type variety.
. 4. Similarly a sustained break down below BB midpoint to the lower BB segment will signify either Mr Market is back to a neutral stance (ie a trading range) or the Correction that kicked off from early Sept is not over yet. . The story continues. Let's watch this space one step at a time!
Live Long & Trade Well.
. Thank you & regards .
Thomas Ng, CMT Principal Trading Representative 首席股票经纪 www.thom-ng.com . #plsreaddisclaimer #chartforillustrationonly #spx15oct21 #negativeseasonality #befluid #wytant #livelongandtradewell Chart source: tradingview"