Friday, December 2, 2016
SPX, INDU, RUT, BKX Updates
Some markets lend themselves to grand-sweeping predictions, while others are best off being allowed free reign, and thus better-served by being "reacted to" than predicted. This market is presently in the category of the latter.
As an example: RUT recently failed a back-test of a zone that bulls were hoping would act as support, and one could have used that failure (especially the retest from below) as an exit point for longs. One can now watch how RUT proceeds from here and react accordingly.
BKX is currently in the earlier stages of testing a similar zone:
INDU is testing resistance from below:
Near-term, SPX proved out the hypothesis I put forth in the prior update:
In conclusion, I don't have much to offer in the way of near-term predictions from the market's current position. Presently I'm primarily in "reaction mode" (for example, on Wednesday in our private forums, I suggested if 2204 broke, it would probably make a good exit point for longs, which saved folks some drawdown), and I'm avoiding front-running. In time, everything will clarify, like it always does -- so there's never any need to "force" the market to constantly fit into some preconceived idea or other. Traders need to have more than one tool in their arsenals. Trade safe.
Posted by PretzelLogic at 4:36 AM