Monday, December 28, 2020

SPX Update: Pinball Wizard

Since the start of December, this market has been about as interesting as reading a washing machine instruction manual.

For the past couple weeks, I've warned that bears would need to break through the C1 support zone to get anything going, and, after testing that zone again last Monday, futures have now bounced back up to the all-time high.

The bounce will take us back to the intermediate trend line again.  We'll see if bulls can get through it this time, or if bears have anything left in the tank.

In conclusion, for most of December, it's been market pinball between intermediate resistance and near-term support.  As I wrote previously, the more often a level is tested, the weaker it becomes -- so we'll see if anything changes on this run.  Trade safe.

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