Wednesday, February 12, 2020

SPX and INDU: Blogger Glitches and the Market

Wow, some weird Blogger glitch just deleted my entire piece here, so I have to start over with minutes until the open.  Lovely.

Anyway, as I was saying, in the last update, things were looking reasonably good for bears, but the market had not yet sustained breaks of any of the key levels we were watching.  As fate would have it, those key levels proved to be significant support and the market bounced up to new highs from there.

Predicting B-wave highs and C-wave declines is always difficult business, which is why I titled the original post "Out on a Limb."  If bears are going to make a stand on that count, then they probably need to prevent bulls from sustaining trade north of 3383ish.

In conclusion, bulls aren't out of the woods just yet... but given that we know (or continue to believe we know, anyway) that the larger degree trend is up, it's tricky business predicting countertrend declines, so my long-standing advice of awaiting an impulsive decline continues to hold.  We should have a clearer idea in the next few sessions as to whether bears are going to show up soon or not.  Trade safe.

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