Monday, August 8, 2016


Last update was on July 27, wherein I suggested that the rally was over-extended and due for some type of correction, minor or otherwise (I began suggesting this back on July 15, when I noted the market was bumping against resistance).  A correction did materialize, and captured its first downside target in NYA.  It then found support and bounced strongly:

NYA bigger view below:

INDU also found support at the first noted support zone:

As seen on the charts above, INDU and NYA have yet to make new highs from this bounce, but SPX has made new highs.  It would not be unusual to see an expanded flat develop in this zone, so watch the noted support levels on the chart below for clues.  Keep in mind that in the event SPX were to reverse lower immediately from current levels, odds would be decent that the next low would represent another buy op.

Finally, BKX is also still below its recent high, but (for the moment, anyway) still in the midst of a bounce from the lower boundary of its long-term trend channel:

In conclusion, my short-term top call from last month played out, but bulls held the first support levels across several markets, so there's nothing yet indicating an intermediate trend change.

On a personal note, I'm still in the middle of a big move, and may or may not be able to produce another update later this week.  As noted last update, hopefully things will settle down next week.  Trade safe.

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