Wednesday, September 12, 2018

SPX and INDU Updates: Still No Material Change

Last update expected SPX might bounce, since it had reached the lower trend line, and it's done that.  Ultimately, my "best guess" remains that lower prices are probably still needed, and the best evidence for that might be INDU:

The pattern above isn't a sure-fire lock, but it's better than 50% odds that the a/1 low will be broken before too long.

SPX would be expected to follow a similar path (as it usually does), but in SPX's case, an equivalent new low would break the lower red trend line:

In conclusion, no real change from last update, and my best guess is still that lower prices are needed before any kind of lasting low become viable.  Obviously, sustained trade north of the all-time high would cast doubt on that "best guess."  Trade safe.

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