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Wednesday, July 6, 2022

SPX and INDU: Harbinger?

Since last update, there's been another test of and bounce at support... however, INDU made a new low during that test, which might be a warning that yesterday's low is a b-wave low (meaning that low will be revisited/broken):


INDU's (unannotated) chart below:


In conclusion, on the one hand, support held again -- however, the new low in INDU is probably not what bulls wanted to see, as that can be a warning of a temporary low.  SPX, of course, did not make a new low, so this isn't crystal clear, and maybe INDU simply needed a fifth wave to wrap up its decline... but it's certainly a caution signal for bulls, at the minimum.  If the bounce in SPX continues, then watch 3845-55 and 3868-75 as potential resistance zones.  Other than that, no real change from the past couple updates.  Trade safe.

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