Wednesday, April 21, 2021

SPX, NYA, COMPQ: Market Reacts to Noted Resistance

Last update proved quite timely, as it warned that multiple markets had reached resistance zones, which could precipitate a correction -- which is exactly what happened.   Most interesting to note that Elliott Wave pointed the way to this correction well in advance via COMPQ, and we were able to identify the resistance zone before the market got there, even without looking at classic TA trend lines:

The near-term support and resistance chart again proved useful:

NYA reacted to its major trend line for the fourth straight time (or reacted to the alt. count, with the "alt. 5" label unmoved since April 7, if you prefer):

Bigger picture, SPX is still above its next major support zones:

A slightly different angle:

In conclusion, keeping things as simple as possible:  The market is in a clear near-term downtrend at the moment, so the first step for bulls is to break out of the down-channel (along with breaking back above the black trend line on the SPX near-term chart; second chart).  If they can do that, then they could put together a larger bounce --- but until they do that, the market will remain in a downtrend.  Trade safe.

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