The Retracement Low Is (Probably) In

We are doing our monthly free public Chart Chat on Sunday. If you’d like to attend you can sign up for that on our July Free Webinars page.

SPX reached the ideal 2680-2700 retracement low range and has rallied strongly from there with a 60min RSI 14 buy signal fixing this morning. The low isn’t definitely in yet, with resistance at the 50 hour MA and daily middle band above in the 2737 and 2756 areas respectively, but this is a very strong candidate low, but a decent double bottom setup here meaning that there would be no need to retest the low as part of a bottoming process. We’ll see how that goes.

Partial Premarket Video from – Update on ES, NQ, SPX, NDX, RUT:

The cleanest reversal setup is on NDX, with a falling wedge / bull flag that broke up this morning, another hourly RSI 14 buy signal fixed this morning and a double bottom setup to point the way back to the high retest that would also be the minimum bull flag target. Any retracement today will look like a buy to me. You might still be reluctant to be long yet subject to more confirmation, but this isn’t a setup that I’d be at all keen to short. NDX 60min chart:

The weather is nice here in the UK for once. There’s a strange yellow ball in the sky which I understand from google is called a ‘sun’. Not a common sight in the UK at all so I’ll be investigating this phenomenon over the weekend. Everyone have a great weekend! 🙂

Written by:

Richard Chappell

Jack is a 20 year retail trading veteran and co-founder of The Art Of Chart. He started his blog at in 2010 and since has published tens of thousands of charts looking at hundreds of trading instruments across most tradeable markets, doing original work mainly in the areas of trendlines, patterns and divergences. At The Art Of Chart Jack has taught trading skills, technical analysis, and the discipline and trader psychology that allow those to be used effectively in trading.

29th Jun 2018

Leave a Comment

Your email address will not be published. Required fields are marked *