Wednesday, February 27, 2019

SPX and INDU Updates

Let's get right to the charts.  First up, INDU is working against an obvious channel:

INDU closed near support, so we'll see how it reacts to that today.

SPX seems to have shifted into a new near-term channel -- the blue channel, which I drew on the chart a few days ago:

SPX MIGHT need another near-term wave down, but it's not entirely clear to me at this moment.

In conclusion, SPX has run a little past the dashed red resistance zone, but is presently back-testing that zone.  A sustained whipsaw back through the lower red line could generate a larger sell-off, if that were to occur.  If it holds the breakout, then it would be back to "business as usual."  Trade safe.

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