Bo Yoder S&P update

The S&P 500 (ETF Proxy – AMEX:SPY) attempted a bearish breakdown this week and was soundly rejected as bullish power surged.  This reversal of power readings will likely lead to a push back up to range highs, and possibly even a breakout to the upside…

However, our proprietary 3D Apex Predictive Failure Technology™ indicates that any bullish price wave is destined to fail, so be forewarned not to get suckered into any breakout types signals on a daily or weekly level.

Intel Corp (NASDAQ:INTC) broke out to the upside as forecast, but then experienced a power reversal that is likely to take price back down into the red zone for a re-test.

The best case scenario would be for a clean double bottom pattern to form. If a breakdown does occur, we forecast that it will be unsustainable, and will reverse to form the head of what would likely end up as an inverse head and shoulders reversal pattern.

JP Morgan Chase (NYSE:JPM) completed our forecasted move as price reached down to test the blue zone almost to the tick.  Now, we would expect to see prices rally back up to the $60.25 area to form a head and shoulders pattern on the daily chart.  At that point, we will take further measurements and see if a re-entry is in order based on the odds for success at that time.

Denbury Resources (NYSE:DNR) is an independent oil and gas exploration and production company which has been beat up badly after a sustained downtrend of many months.

Bearish power has been falling off recently, and we forecast that this stock will have one more bearish thrust back down before it is likely to reverse and form a sustainable bottom.

The best case would be for it to reverse near the $3.70 area to form an inverse head and shoulders pattern. It might also test lower and form a double bottom, so be on the lookout for either scenario to occur as price challenges the green zone.