The S&P has moved exactly as I predicted it would for the last week. Today it just tested the upper resistance line and has since pulled back a little. If you take a look at the charts below, I will show the daily outlook and what we should expect for the following week.
This chart shows how we are currently trading within an expanding flat. Within that flat we are in a current downward move and have yet to break out. There is a little breakout but until we see it have a couple bars outside of it we can't count it is a break.
So what does that mean going forward? Well I see another pull back to end the week down and at the start of next week a push upward and breakout of the downward move. Now we will have to wait and see what the chart does but currently I would expect a choppy downward move that flirts with trend-line. If this does occur wait for the breakout and get ready to go long.
One of the possible ways this chart might play out is something like this. If the chart starts to act like this the upcoming week it is priming itself for a breakout and it would be a good idea to start thinking about going long. If you are not in the trade already, I would not enter right now because more times than not the next move is going to be a downward move that could take us all the way back to the lower trend-line.
If something like this occurs we will be looking for a sharp impulse move back upward and it wouldn't be a bad idea to buy this dip and go long. I am sharing this view because this is a good possibility and if you buy long now you will most likely lose money immediately.
Now long-term we are expecting a test of the upper support line. It will look something like this. We are looking for something that will move up in a choppy pattern because we have seen the sharp impulses be on the downward moves so our corrective moves are upward.
I hope you liked my analysis on the market and if you have been following me you hopefully are already in this trade and have made some money already. For those of you new out there I am hosting a contest ending tomorrow for guessing the closing price of the S&P 500. It is a small contest and my first one ever so bear with me as I build this up and share these posts with others so we can help build this platform.
As always have a great day and an even better one trading.
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Contest: https://steemit.com/contest/@ricjames/weekly-s-and-p500-contest-april-27th