Wednesday, June 14, 2017

SPX Update

Last update warned bears not to get too excited, and specifically warned that the (then-current) prices represented a bad bet for shorts.  Hopefully that saved bears some money, because we've since rallied back almost to the all-time high in SPX -- and some other indices even exceeding their previous highs.

Long-time readers know that occasionally there are times that I feel a pattern is so incredibly unclear as to not even warrant a prediction -- and I would have to say that this is one such time.  A few weeks ago, I mentioned that quite a few markets were in apparent contradiction, and this theme has only continued and intensified.  As a result, the intermediate picture has become increasingly more muddy.  Some markets look like they may even be on the verge of a major bullish breakout, while others look like they could conceivably be completing terminal patterns (some of which would still require additional new highs). 

Because there is nothing approaching a consistent theme across markets, I don't feel like anyone's in a position to say with much certainty which side will emerge victorious.  The amazing thing about trading and charting is that while markets can look like total chaos at times, sometimes things will clarify as quickly as a session or two later, so all I can really advise is patience. 

Just one chart today, because there just isn't anything new worth discussing today.

In conclusion, the market remains in something of a no-man's-land, so the only thing I can advise (in good conscience) at the moment is patience -- though, of course, if you're the daring type, small spec trades with good stops are always an option as well.  Trade safe.

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