Monday, July 27, 2020

SPX, INDU, COMPQ, and Gold: The Leroy Brown Market

This market reminds me of Leroy Brown at the end of the song Bad, Bad Leroy Brown:

"Leroy looked like a jigsaw puzzle... with a couple of pieces gone."

That's how this market looks.  Lots of missing pieces.

Despite that, on Friday, the market actually behaved "normally" and did exactly what I was expecting.  SPX and COMPQ both headed lower, and then tested the zones they "should" have tested:

COMPQ retested the black line (retests are rarely "to the penny," so this was in the ballpark it should have been):

And INDU even came down and tagged its red trend line (this one, like SPX, was actually to the penny), just for good measure:

Finally, I want to include a quick update to a gold chart I published (forum only) back in mid-March:

In conclusion, what does all this mean?  Well, it means that bears haven't broken support yet.  And that means we're no farther along than we were on Friday.  Bulls are free to try to rally it from here, bears need to break and hold first support to help signal lower prices.  Unfortunately, that's about all the news that's fit to print at the moment.  Trade safe.

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