Monday, June 29, 2020

SPX and INDU Updates: Interesting Market Reactions to Legacy Trendlines

Nothing much to add since last update, but I didn't want to call attention to some old trend lines on the long-term INDU chart, because the market has reacted to them:

Bears have continued to push their position in SPX so far.  SPX bulls could always still have some tricks up their sleeves, but the levels they would need to sustain breakouts over appear to be reasonably clear:

In conclusion, I'm still presuming that A/1 down is complete with C/3 down still due -- the main lingering question is whether B/2 is complete or will become more complex.  Bulls would need to start clearing near-term resistance to get anything going, but if they do, then bears might want to be cautious.  If they can't, then bulls should probably stay cautious, as C/3 down could be underway.  Trade safe.

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