Monday, August 3, 2015

SPX and INDU: Ingredients in Place, Can Bears Make It Happen?

Last update projected an opening pop to a marginal new high in INDU that would be sold, and that's exactly what we got.  In a perfect world, to keep things simple, bears would like to see Friday's highs hold in INDU and SPX.  Another marginal new high would be okay, but the near-term bear counts would be cast into shadow if this were to occur.

We'll start with INDU:

INDU's hourly chart:

Below is a super-simple chart of SPX:

And finally, the SPX 1-minute chart does support the bear case:

In conclusion, while we can't be certain that a reversal began on Friday, bears do have all the correct ingredients in place.  There's not much else to be said.  Trade safe.

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