Friday, April 23, 2021

SPX and COMPQ Updates

Last update noted that if SPX could clear the black line immediately overhead, it would likely generate a larger bounce.  SPX did clear black -- and again proved the value of the near-term chart below:

Note that the potential second target above (in the event of a breakdown) lines up roughly with the green line below:

COMPQ bounced from the median channel line, and has since dropped back to it (I'm not updating this chart because Stockcharts is doing that thing where it deletes all my annotations if I update):

In conclusion, the market rallied to resistance yesterday, then was rejected straight back to support (so could bounce today, if it so chooses).  In the event support fails, we have our next potential targets.  Trade safe.

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