Possibility of Big Rally Coming Soon
I am expecting a big rally soon, and there is a possible setup for that to be starting here.
Unless there is strong evidence to the contrary we are looking for another lower low first. This falling wedge on the SPX 15min chart is looking bullish, and I have a similar pattern on ES, with NQ and TF also having tested trendline support at the globex lows. SPX 15min chart:
In terms of open targets SPX(NYSEARCA:SPY) made the both of the alternate double top targets at 1936 and 1924 on Friday, and RUT has also made the pattern targets, though there is still a compelling target area below in the 1025-30 area. NDX is the exception, with an open target below in the 4225 area. NDX daily chart:
It’s looking like a more two sided day so far today. I would like to see a decent rally today into at least the 1940-5 SPX area if the bulls can manage it before the next leg down. It’s possible though that the high today was made just after the open.
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