Wednesday, April 15, 2020

SPX Update: Market Tags the Resistance Zone

Last update noted that SPX was approaching a resistance zone, in the form of the red trend line on the chart below:

I drew the beginning of the blue projection line with a slight overthrow of the red line (the zone I've noted on the forum repeatedly for the last week or so was 2850, so I began it there) -- and yesterday, SPX tagged 2851.  Today, it's going to gap lower.  So it's acknowledging the resistance zone, which is also an inflection zone.

The chart below shows the first potential near-term support zones:

Beyond that, not much to add.  Until bears break down the above support zones, we can't entirely rule out the possibility of higher prices (especially since I can't rule out a b-wave high instead of a diagonal) -- but ideally, I'd like to see a larger correction (or a run to new lows) begin now.  We'll see how it develops from here.  Trade safe.

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