The SPX appears to have broken out today above R1. However, the day isn't over. If we get some profit taking into the close and the SPX closes down near R1, that will not look like a breakout and would instead appear to be a failed attempt at a breakout. So action into the close is going to be important.
Today opened with an upside gap off ST-S1. Gaps in the SPX "usually" fill. The market liked pre-open news and therefore lots of buyers cause the gap. I certainly prefer to see a breakout above R1 without a gap but we'll just have to watch. We won't chase this market and therefore won't be making any moves today.
The SPX appears to have broken out today above R1. However, the day isn't over. If we get some profit taking into the close and the SPX closes down near R1, that will not look like a breakout and would instead appear to be a failed attempt at a breakout. So action into the close is going to be important.
Today opened with an upside gap off ST-S1. Gaps in the SPX "usually" fill. The market liked pre-open news and therefore lots of buyers cause the gap. I certainly prefer to see a breakout above R1 without a gap but we'll just have to watch. We won't chase this market and therefore won't be making any moves today.
