Friday, July 10, 2020

SPX Update: A Good Day for Bears; Can They Get Another?

Yesterday's test of the presumed B/2 high proved to be a solid short op, at least for a near-term play, and made for a nice day for nimble bears.  But now it's worth mentioning that there are only three waves down to 3115 so far.  Which means bears need to claim and hold that inflection zone to prove they have the ball.  Until that happens, we can't rule out the potential for another high to complete B/2 (and can't yet rule out the alternate count, for that matter).

Note I've drawn-in an even more complex option the market could take for B/2, if it wants.  Not saying that's going to happen, but it was easier to draw it in than to try to verbalize it (for readers' sakes):

In conclusion, the market has now been stuck in a broad trading range for about a month, so there's still not much to add to recent updates.  Trade safe.

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