Monday, October 30, 2017

SPX Update: No Surprise

Last SPX update concluded that "The decline... appears to have been corrective in nature, which implies new all-time-highs are on the menu."

SPX made new ATH's on Friday.  The question now is whether it's going to goof around a bit more before moving higher.  INDU and SPX both remain overbought, and bull markets often work off that condition by grinding sideways for a time.  I suspect we may do that, but the charts don't give me a reason to hold a strong opinion one way or the other on that potential at the moment.

Either way, we still don't have anything screaming at us to be bearish yet -- though that can always change in as little as one session.

I've drawn up one option on the chart below, but I'm not married to it.

Of note, INDU and RUT did not make new highs on Friday.  Usually INDU leads SPX, so unless that situation remedies quickly, then it might be further argument for some chop heading forward.  Trade safe.

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