Daily - buy Weekly - buy Monthly - buy
My sell signal got invalidated when we took out 1237 on SPX cash and got stopped out on my shorts for a 5 point loss. Now SPX 1260 is a magnet for various reasons. The declining tops line was taken out, which almost gauranteed that we would make new recovery highs in the index.
Now if we rally in the next few days without a pullback,1255-1260 is where the upper trendline of the hourly trendchannel is for the next couple of days. 1260 is where the upper trendline of the wedge on the daily charts is. 1260 is the exact measured move target from the rectangular consolidation on the hourly charts is.
Given how well all the technicals are pointing to 1260 and the underlying bullishness, i think we will end up exceeding the 1260 target. There is no low risk trade at this point given how overbought the market is. My strategy will be to try to buy the pullbacks with close stops.
My hourly indicators are suggesting a pullback early next week and i expect a retest of the declining tops line around 1235 and then another leg up to 1260+. If the declining tops line does not hold, then a retest of the channel support at 1225 will be in order.
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