Wednesday, August 22, 2018

SPX and INDU Updates

So yesterday, SPX gave a perfect retest of the all-time high, then found resistance there.  INDU is still a ways away from its prior ATH.

There's nothing really to add here to the last few months of updates.  We began expecting a "complex double retrace" of the January/February mini-crash wave pretty much immediately after it ended in February, and now here we finally are.  The main question at this point is whether it will stop "here" or if it continues higher.  The red B-wave on the chart below could run higher if it wants to, even 100+ points higher... so bears probably would like to see this test hold.

INDU is in a bit different position, and also has room to run higher if it wants.

In conclusion, ideally bears would like to continue the turn that began end of day yesterday, but I'm always at least a little skeptical of "bad news" tops, so we'll see how things go.  Trade safe.

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