Wednesday, December 7, 2016
SPX, BKX, RUT Updates
Due to internet issues, last "update" was incredibly short and to the point, noting that nothing bearish had happened so far, and that the decline appeared to be a normal rally correction. Since then, RUT, INDU, and BKX have all made new highs. NYA has finally broken above its prior swing high.
With numerous markets clearing resistance, bears have nothing to sink their claws into yet, and will simply have to continue awaiting greener pastures. As I've stated on a few occasions during the past few weeks, there's just no good reason to front-run against a move like this. Once we see something that resembles an impulsive turn lower, then bears can consider stepping out of the shadows -- but until then, the trend is clearly up at all degrees right now, so it's still the bulls' ballgame.
RUT's potential target from November 16 remains active:
RUT's recent decline found support at a support level that had been previously identified:
BKX is still on a tear (continued, next page):
SPX found support at the oft-discussed red trend line, which has acted as support-resistance frequently over the past few months:
Near-term, if SPX sustains a breakout, the next target appears to be 2225 or so:
In conclusion, as I mentioned on Monday, there's still nothing for bears to write home about. Of course, that can (and eventually will) change on a dime -- but that doesn't mean one should play for that eventual change (as discussed repeatedly over the past few weeks), because it could easily come from prices that are significantly higher. Thus bears should await an impulsive decline before considering anything other than short-term trades, while bulls remain in "ride the trend" mode on an intermediate basis (jumping in and out short-term is always an option for some) until such time as the market says "knock it off!" Trade safe.
Posted by PretzelLogic at 4:28 AM