Friday, September 20, 2019

SPX Update: Uninspiring Patterns

Yesterday, SPX made a new high for the current rally wave, which resolves the RSI divergence I spoke about previously, and resolves this statement, which I made on Wednesday:  "My instinct is that it still needs at least one more high..."  Beyond that, the market is still stuck at the major inflection zone discussed way back in early July.

Overall, there isn't much to add, and the near-term pattern is as wonky as anything we've seen all year (in the article title, I mean "uninspiring" in the sense of "not inspiring any clear calls").  I can see one option for the market to drop down toward 2970 before rallying again, but I can't assign any higher probability to that than any of the other options I can see (which pretty much run the gamut).  We'll just have to continue to watch and wait and see how the market reacts to this inflection zone.  Trade safe.

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