Last update, we talked about all things bearish, so in this update, we're going to at least take a look at some options for the bulls.
Probably the main thing bothering me about the recent top is that it came on bad news. Strange as this may sound, I generally don't like "bad news tops." Bad news tops spark panic selling, and that can lead to "seller's remorse" shortly down the road, when everyone realizes that the world didn't end immediately. As the old expression says: "They don't ring a bell at the top."
Don't get me wrong: I'm still going to proceed under the assumption that this is "bearish until proven otherwise" -- again, I'm just trying to bring some balance to the outlook. Forewarned is forearmed, as they say.
For one look at a couple potential bull inflection points, here's RUT:
Below is a simple support and resistance chart for SPX, with the note that RSI has not yet confirmed this new price low. Bears would like to see that happen sooner rather than later:
Finally, one of Friday's charts updated with only the new price action. Note that bears broke and back-tested the first support zone:
In conclusion, beyond attempting to bring a little balance to the discussion (as I did above), there's nothing much to add to Friday's update. Trade safe.
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