Tuesday, May 19, 2015
SPX and INDU: Short and Sweet Update
I've had some very exhausting personal issues to contend with lately, so I apologize in advance for the brevity of this update.
Bulls are now testing the first upside resistance levels on SPX and INDU. Basically, bears will want to maintain a cautious stance if there's a sustained upside breakout, particularly if price momentum begins increasing. If there are back-tests of the breakout zones, pay close attention to whether those succeed or fail: If there are lots of anxious buyers waiting on the back-tests, then that will be a positive sign for bulls, but if the market starts dropping through the zones that should be providing near-term support, then that may be a warning of greater pending weakness.
Trying to keep it simple again today, so just two charts. INDU first:
SPX is in the process of testing upside resistance:
In conclusion, the next few sessions may hold the key to the market's intermediate-term future, so bulls and bears will likely be watching closely to see how price reacts to nearby levels. For the next update, life permitting, I'll attempt to present some of the options for wave counts. Trade safe.
Posted by PretzelLogic at 1:57 AM