Wednesday, October 7, 2020

SPX Update: Trump's Tweets Cause a Trend Line

Yesterday, the market rallied up to next resistance, which caused Trump to Tweet:

On the chart above, we can see that SPX dropped right to the red support line, and it will open today's session with a reaction to that line (aka: a bounce).

On the daily chart, we can see that Trump's Tweets caused a blue trendline on the chart, which goes back a decade and which we've been watching for weeks.  

(Wait, what?)

In conclusion, the market is pinned by long-term resistance on the upside and short-term support on the downside -- note that last update's potential of a sideways grind still applies, as we're still in the congestion zone, so the market could test resistance again and/or test lower levels of support before resolving.  Trade safe.

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