Friday, February 14, 2020

SPX and INDU Updates

Last update talked about 3383 +/- as the next significant resistance zone for SPX, and two interesting things happened at that zone since.  First, the futures market tested that zone and then dropped like a rock.  Cash then recovered the drop yesterday, and rallied right up to that zone, where it stalled again.  Which is where we find ourselves today.

I had some trouble with this first chart, because Stockcharts suddenly decided that the ability to save your work was a stupid feature that they've been meaning to do away with anyway, so I had to screenshot it, since I couldn't save:

I also decided it was probably time to update the long-term chart, because I haven't done so in a few months, and INDU has come very close to its second target (originally published in July):

Long-term SPX does appear to have firmly entered the green channel, which we discussed in December:

In conclusion, the market is now testing a resistance zone.  Keep in mind that even if it breaks briefly above, it will need to sustain that breakout.  Long-term, the trend remains unchanged.  Trade safe.

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