Wednesday, July 22, 2020

SPX, INDU, NYA: Mixed Messages

So, yesterday SPX gapped up over prior resistance, then stalled.  INDU and NYA both remain below their June highs, which sends mixed messages.

INDU below:

NYA next:

Finally, SPX:

Frankly, because of all this, I still have no strong opinion on whether we're dealing with a B-wave high under construction, or are in the midst of a third wave rally.  All we can do is watch how the market deals with support as it comes down to retest it -- if prior resistance has turned into support, then bulls probably keep the ball.  If support fails significantly, then bears may get their B-wave.  Long-term, the preferred count remains bullish for the time being.  Intermediate-term, I'd still prefer we see a better correction, but the market doesn't really care what I want, especially as long as it can swim in Fed/stimulus money -- so we'll just take it as it comes for now.  Trade safe.

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