Monday, June 6, 2016
SPX and BKX: Still a Chop Zone
Friday saw the market open sharply lower, but buyers showed up for the remainder of the session. Near-term, the pattern is nothing but chop at this point, so I can't draw any high-probability near-term conclusions at the moment. Bigger picture, we're also still in the chop zone that I warned about back in March. Stay alert to the possibility of a head-fake higher. In the event there's a breakout followed by a whipsaw with this pattern, I would suggest bulls behave extremely cautiously.
BKX did what it was "supposed to," but it didn't do it in a pattern that leaves much clarity in its aftermath, so there are no new conclusions to be drawn here presently:
In conclusion, we're still inside a larger chop zone, and there still isn't any new information from the market. Thus, as of yet there really isn't too much to add beyond the last few updates. That will hopefully change soon, but patience is in order for the moment. Trade safe.
Posted by PretzelLogic at 3:34 AM