Posted on 9/18/2017 8:27 AM by Dave Toth
Fri’s rally above last week’s prior resistance around 2496 reaffirms the secular bull and leaves Fri’s 2487 low in its wake as the latest smaller-degree corrective low this market is now minimally required to fail below to stem the bull and expose another interim corrective setback. In this regard 2487 is considered our new short-term risk parameter from which shorter-term traders with tighter risk profiles can objectively rebase and manage the risk of a still-advised bullish policy. Former 2496-area resistance is considered new near-term support.
Should the market fail below 2487 however, we would only be able to conclude the end of a 5-wave sequence/uptrend from 05-Sep’s 2444 low, nothing more, nothing less.