Since last update, SPX has continued wrestling with the 3383+/- resistance zone that I called out a while back. So far, there's no larger impulsive decline to add confidence to the near-term bear option of an expanded flat. INDU most clearly seems to illustrate the (so far) three-wave nature of the decline:
SPX, on the other hand, now has three small impulse waves down from the all-time high. This suggests a sustained new low could be part of a bear nest. The bull option is for a "double three" correction (that would become confirmed if SPX makes a new ATH).
In conclusion, SPX has remained stalled in this zone, which does at least confirm the read of 3383+/- as resistance. What it does not tell us yet is if that zone will continue remain resistance. The more a zone is tested, the weaker it tends to become, as the market works through sell orders (or buy orders, when dealing with support). Bears need to sustain a break of Tuesday's low -- but if they can, that would help their case greatly. If bulls can instead power up through resistance and hold the breakout, then the near-term bear options would be reset. Trade safe.
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