Friday, September 21, 2018

SPX and INDU Updates: Bulls Still Holding the Cards

Well, at present, there's not much for bears to get excited about.  SPX did retest the prior ATH, which we anticipated -- and that level held the back-test.  A failure there could have been encouraging to bears, but it, of course, never materialized and that zone acted as "resistance turned support."  Traditionally, that's a bullish signal, so we'll just keep trading the prevailing trend until the market tells us to do otherwise.

INDU's chart had warned us back on September 14 that the best bears could hope for was "just a correction" and that the pattern was ultimately (likely) bullish either way:

SPX below:

In conclusion, there's very little for bears to get excited about presently.  That could always change tomorrow, but right at this moment, the overall pattern looks anywhere from "a bit bullish" to "extremely bullish."  Unless and until that changes, the only thing to do is play along.  Trade safe.

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