Posted on 5/2/2017 7:36 AM by Dave Toth
While the market still hasn’t broken our previous short-term risk parameter defined by 10-Apr’s 1248.2 low, yesterday’s break below last Wed’s 1260.7 low clearly reaffirms a developing slide from 17-Apr’s 1297.4 high that is sufficient enough at this stage to conclude that 1297.4 high is the END of the uptrend from 10-Mar’s 1194.5 low. By virtue of yesterday’s resumption of the past couple weeks’ slide, yesterday’s 1272.4 high now serves as the latest smaller-degree corrective high and our new short-term risk parameter from which non-bullish decisions like long-covers and cautious bearish punts can now be objectively based and managed.
Needless to say, 17-Apr’s 1297.4 high is THE high and key risk parameter the market is required to recoup to mitigate any broader peak/reversal threat, reinstate the longer-term bull and expose potentially steep gains thereafter. In this regard 1297.4 is considered our new long-term risk parameter ahead of a larger-degree correction or possible reversal lower.