Friday, June 8, 2018

SPX and Oil Updates

A week ago, I discussed that we should probably anticipate an overthrow of the upper red trend line on the SPX chart, and that has finally happened:

Interestingly, Crude Oil reached, and reacted to, a target/resistance zone that was correctly identified nearly 8 months ago.  At the beginning of May, I noted that we were in the target zone, and we've turned from that zone since then.

In conclusion, SPX is getting into the ballpark where a diagonal (if that's what this is) could complete, but we do not yet have an impulsive decline to confirm its completion.  Thus, at the moment, we can't rule out some additional thrusts higher, because the invalidation point is still a ways off at 2825.  We'll see how it develops from here.  Trade safe.

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