Friday, August 10, 2018

SPX Update

Last update warned that it was a good idea not to put the cart before the horse, and that we shouldn't get too bullish yet, because the zone near the all-time high could act as resistance.  That zone has indeed acted as resistance so far -- after stalling there and making a couple failed runs higher, it appears SPX will open today with a gap down.

One would think that SPX will probably want to at least test the mid-2820's from here.  Interestingly, because of the potential expanded flat I spoke about on Monday, in the event that SPX heads all the way south of 2800, bears are going to need to be near-term cautious at that time, as shown on the chart below:

In conclusion, the all-time high is acting as resistance so far, which is what bears needed to see at this stage in the game.  We'll track this in real time and see how it develops.  Trade safe.

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