Monday, October 7, 2019

SPX and INDU: Upside Target Captured; Market Faces Potential Resistance Zone

Last update suggested bulls should "at least get a test of 2939-49" SPX, and bulls captured that target plus a few points on Friday.  We're now into the next resistance zone, which stretches from current levels up to about 2962ish.

INDU is also testing a potential resistance zone.

In conclusion, SPX captures its next upside target zone, and the rally has run pretty far pretty fast, so it would not be unusual to see some backing and filling kick in soon.  The momentum at the 2855 low usually suggests some sort of retest of that low (typically this will start weighing on the rally reasonably soon, though this need not happen immediately).  Trade safe.

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