Our market indicators are mixed at the moment. Options data is bullish. Internals are holding a somewhat bullish posture, but the short-term Micro1 indicator went to the sell side. Price action is short-term neutral, medium-term neutral and long-term bullish. Our Odds indicator went to a buy signal last week, while our Composite indicator went to a sell signal. So we have conflicting inputs from our main signals which means no primary trade setup. But we have a complimentary partial long trade open based on the Odds indicator.
My view is that we may have seen a bottom late last week and we have one more leg higher into the 3750+ area. I do not see us as having enough energy to go to 4000+ immediately -- not before a complete reset in the markets.
The posture of internals and techs do not support an immediate big move to the upside. I think they have to be reset before that. So I see us moving up to maybe 3750+ ... facing resistance there and then beginning a bigger move to the downside.
How low? Let us see first where we top out and what the indicators and signals say at that point of time. And remember this is all speculation -- we still trade based on what our indicators and signals are saying, which for now is: Primary trade in cash and Complimentary trade partial long.
All the best to your trading week ahead.