Monday, March 11, 2019

SPX, INDU, NDX: Mixed Market

Friday's market declined right to Target 2, then meandered around most of the session before bouncing strongly into the close.  We currently have some mixed near-term signals among different markets, and Boeing looks set to drag the Dow Jones Industrial Average (INDU) into a deeply red open this morning -- while SPX has remained relatively flat.

But the signals aren't mixed for THAT reason, but due to the charts Friday's session left us.  Let's start with SPX:

While SPX has broken its first near-term downtrend line for the moment, it has yet to reach the black trend line that's currently crossing near the 2762 (and falling) zone.

INDU, on the other hand, didn't even manage to break its first trend line on Friday, and if it declines strongly off the open, that could "lock-in" a three wave corrective rally:

The NasDUCK 100 (NDX) finds itself in a similar position to INDU:

In conclusion, the market did rally off the target level (target levels often act as support/resistance zones), but it has not yet signaled the "all clear" for bulls, so we can't yet say if the decline is over or not.  (Bears, of course, are hoping "not," but that's not a given either yet -- and if the rally starts to show legs, then these apparent "three wave" structures could develop into something bullish.)  Either way, sustained trade below 2722 should take us toward 2700+/-, though if SPX throws in a complex correction, that next target might not be reached immediately.  Trade safe.

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