Wednesday, May 19, 2021

SPX and NYA: First Key Support Violated at Tuesday's Close

Last update warned that if bulls couldn't muster another wave up, then the 4128 zone would become key.  At the close yesterday, SPX broke that key zone, and futures indicate a sizable gap down this morning:

SPX was rejected at the blue trend line on the 60 minute chart:

NYA was rejected at the back-test of the red trendline (I noted in Monday's update when this back-test was underway):

In conclusion, bulls will have a shot to try to hold the zone around last week's low (plus or minus a bit) -- if they can't, then next targets apply as discussed.  Trade safe.

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