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Friday, May 7, 2021

SPX Update: Oh What Fun

Last update noted that 4193 was the first key overlap, and the market recognized that zone as bears initially made a convincing stand just shy of it... but they were unable to push through, and yesterday's decline found support at the trendline connecting the March lows with the May low, launching SPX back up to retest the ATH.

I've been charting the market for decades now, and can't recall too many markets that were this, for lack of a better term, "screwy."  The near-term patterns are still playing by the rules, but are blowing many of the "guidelines" (meaning: "typical historical market behavior") out of the water.

Which is one of the reasons I haven't been keen to get too fancy, or locked-into any linear thinking, on the projections... and Monday's update concluded with a simple thought:

Either way, the market is still pointed higher, either immediately, or after said correction.

And thus we now find ourselves back into a sort of "projection no man's land":


In conclusion, the market has been in a trading range for the past month, so there's not much else to draw from this pattern other than the aforementioned "still headed higher" and "near-term, here are the things it could be" -- which we've done for the time being.  Eventually the market will start behaving like a market again.  Trade safe.

1 comment:

  1. To most this Bubble is transparent. When it becomes translucent trouble will result. DOGECOIN started as a joke and was jokingly accepted by a billionaire. A stint on SNL popped that bubble. Insane moment in history. Commodities ready to accelerate much higher. Can't find qualified workers as job gains take a big hit. Extended 5th wave has no rhyme or reason. Suggesting the pop will be fast and sudden.

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