Monday, July 22, 2019

SPX Update

Friday was an interesting session.  The market gapped up, then reversed and trended lower until the close, ultimately closing directly on the next important trend line:

So far, there have been no key overlaps by either bulls or bears.  I'm inclined to lean toward lower prices at this point, at least for the near-term -- but the market might not do so directly.  In fact, I wouldn't be at all surprised if it rallies back toward 3007 first, then fails to crack the all-time high, then reverses back below last week's low:

(NOTE:  Typo:  "2007" should read "3007."  ("2007, 3007... whatever it takes."))

Shortest version possible:  If it continues rallying from here, then bulls will need to be cautious around the next upside inflection points of 2997 and 3007ish.  If it decline directly and breaks the trend line, then bears will need to be cautious around the (first) larger ABC inflection, near 2955.  Trade safe.

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