Monday, June 13, 2016

SPX, BKX, NYA: Near and Intermediate-term Battle Zones

Last update noted that we had an impulsive decline from 2120, and suggested a first downside target/inflection zone of 2090-96, which was captured during Friday's session.  Interestingly, we bounced almost perfectly at both edges of that inflection zone:  first at 2096, then we dropped down to 2090 and bounced again.

I have a lot of charts to cover today, so let's get right to it.  First is NYA, which is a good representation of the broad market.  Notice that the broad market has gone essentially nowhere in the past two and a half years -- almost amazing to think about, when you consider the huge price swings we've had in that same time period.

Next is the SPX chart, which shows two potential counts.  Bears do have some work to do to get to either of these counts, as we'll see in the bigger-picture chart which follows this one.

I suspect bears will "git 'er done" in the end and at least reach the red C inflection zone shown above, but we do have to remain aware of the approaching support zone shown on the chart below:

Next is a chart of BKX.  This pattern has considerable bearish "potential energy," so if noted support fails and turns into resistance, we could see a decent sell-off ensue:

Finally, a near-term chart of SPX with some clues to watch as the upcoming sessions unfold:

In conclusion, I'm favoring the bears here, but I'm not oblivious to approaching support and the fact that the important battles have yet to be fought.  What happens in the immediately upcoming sessions is thus critical.  Trade safe. 

No comments:

Post a Comment