My hypothesis is that the top of the bull market is in. Industrials and small cap have been laggin for months, so the support at which the S&P500 ended the week will be broken within the next few weeks.
However, the line, that comes from the 2009 low and has held several times, last of them last April, will not fall at the first attempt. In addition, the daily is outside the Bollinger Band. Hence I expect a soft rebound early in the week. If volume is low it would signal for new short positions before the demolition of the 5-year support line.
Based on and inspired by the work by thefiniteidea.
However, the line, that comes from the 2009 low and has held several times, last of them last April, will not fall at the first attempt. In addition, the daily is outside the Bollinger Band. Hence I expect a soft rebound early in the week. If volume is low it would signal for new short positions before the demolition of the 5-year support line.
Based on and inspired by the work by thefiniteidea.
