Monday, January 6, 2020

SPX and INDU: October Targets Captured

Last update, we talked about a potential bottom right at Friday's open, and the market bounced from the open through the rest of the session.  Today it looks primed to open lower, but it's worth noting that futures are still above Thursday/Friday's low (for the moment), which crosses near 3206 cash equivalent.

That said, INDU did capture its intermediate target from October.

In SPX, as I mentioned back on 12/23, some whipsawing in this zone wouldn't be unusual.

In conclusion, this is the inflection zone we began looking at a few weeks back, and the market has captured its upside targets -- so it's not impossible for a larger correction to develop here.  We'll have to see how the market reacts over the next few sessions.  Trade safe.

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