The SPX continues to defy bearish prognosticators and not only broke above the January high, but did so in record time. Since 1971 it has taken the index anywhere from 9 to 91 months to accomplish this task. This has serious bullish implications going forward, but the operative word for the immediate future is “follow-through.”
The projected trading range for next week for SPX is 2875-2935.
You can easily incorporate these targets into your workflow by selecting a lower time frame (4h for example) and by drawing target angles from swing highs and lows. As the trend progresses, these angles can be moved up or down in order to protect short-term gains. The second price level to keep an eye on is the weekly CIT Pivot Line (dotted horizontal line). The rules to follow for swing traders are simple and straightforward: long above the target angle and pivot line, short below.
Here are the monthly CIT pivots for SPX.
Pivot: 2903, S1 – 2865, S2 – 2833; R1 – 2940, R2 – 2975
Oil reached the projected high target and pulled back. The current outlook remains bullish, as long as oil trades above the target angle and the pivot line.
The projected trading range for oil for next week is 67 – 72.
Monthly pivots: P – 69.9, S1 – 67.5, S2 – 63.3, R1 – 72.3, R2 – 74
Gold started anther downswing and will remain in a weak position as long as it trades below the target angle and the pivot line.
Monthly pivots: P – 1205, S1 – 1180, S2 – 1160, R1 – 1230, R2 – 1250
The projected trading range for gold for next week is 1190 – 1220:
Several G6 pairs hit both their upside and downside targets, but the CHF continues to steal the spotlight with its sharp drop measuring twice the projected trading range. Currently, CHF is trying to find a bottom between the .382 and .5 retracement of the January – May upswing.
Monthly pivot at 0.97
The projected trading range for USD/CHF for next week is 0.96 – 0.975:
