Friday, May 15, 2015

SPX and INDU: Letters from the Chop Zone

It's been a couple days now since I ran out of titles for articles written from within the Chop Zone, and morale is dwindling.  Yesterday, we finished the last of our food.  Then, last night, Rob wandered a bit too far from camp, and was bitten by something resembling a spider, only bigger, and with more teeth.  I think we may have to amputate his leg.  He probably won't be happy about that, since he was bitten in the right arm.  Melissa finally went nuts this morning and burned all our maps, not that they were doing us any good.  We just can't seem to find our way out of the Chop Zone, and many are losing hope.  Billy ran off into the woods AGAIN today, completely naked, while screaming, "Chop Zooooone!  Still!!!"  We haven't seen him since.  I think the group is finally starting to crack.

Since last update, the market raced back to the top of the range, and here we sit.  There just isn't anything to add until something meaningful happens, so today's update will cover a few seemingly-significant upside levels.

First is INDU:

And next SPX:

In conclusion... hey, here comes Billy!  Figured he was gone for good.  Sorry -- in conclusion, there are some pretty bullish patterns that remain on the table, but terminal patterns often mimic bullish patterns, otherwise there would be no one left buying.  Thus, we'll watch the upside resistance zones with a close eye for clues.  If the market can even break the prior highs, of course, and it shouldn't surprise anyone if it doesn't -- so far, every prior run up here has been rejected.  Trade safe.

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