Last update, we discussed that the market's intentions were less-than-clear/questionable, and we may be about to get some answers.
It appears that SPX is considering testing the prior all-time high breakout in the upcoming sessions. If it drops down and bulls find support there (meaning prior resistance has become support), then rallies back up and clears this week's high, that would be a positive sign for bulls. If it drops back down and falls through, then that could be a positive sign for bears.
Of course, it's always possible it will just keep rallying immediately, but I think both bulls and bears would prefer to see a retest of that zone first, so we'll assume that's on deck for now.
Like SPX, INDU has also fallen back through its trend line breakout:
In conclusion, a retest of the prior breakout (in SPX) would be healthy. Presuming that happens, how the market reacts at that point could provide clarity as to whether bulls are "for real" with this breakout, or if it's just been a head-fake. Trade safe.
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