Wednesday, December 2, 2020

SPX Update: An Actual Change!

Stop the presses!  We have new developments in the weeks-old trading range!

(insert overly-dramatic sound effect and "Breaking News" animation here)

So, first off, SPX finally cleared the all-time high... but we'll get to another chart after this:

Bigger picture, SPX has again tagged intermediate resistance:

In conclusion, the near-term breakout is now at odds with intermediate resistance, which makes this an inflection.  If bulls can sustain a breakout over intermediate resistance, SPX has a good shot at running another ~100 points (or so) higher.  If bears can make a lasting stand here, they could push SPX back toward ~3500 next.  Near-term, the very first downside level appears to be 3640ish -- while a breakdown there wouldn't necessarily take us to 3500, it could be good for a trip toward 3608-3620, and is thus the next thing bears would like to see.  Of course, the fact that it's a level means that it's also a support zone, so there's no guarantee bears will break it at all, and the market may instead choose to rally right from the open (and even if 3640 breaks, bulls will get another shot to hold it at the next near-term downside target). 

Stay tuned for developments in this breaking story, including an exciting upcoming interview with the late Spiro Agnew.  Trade safe. 

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