Monday, July 19, 2021

SPX Update: Everything Bears Wanted -- So Far

Last update concluded: 

...bears would like to see a rejection [at the green channel], followed by a sustained break of the ~4327 zone.

This is exactly what happened on Friday, and must thus be considered as fair warning to bulls.  It isn't the end of the world yet for the bulls, obviously, but given that we are in a major fifth wave inflection zone, it does get a little tricky for them unless they can reclaim that zone and/or create some wave overlap.


Bigger picture, the next major trendlines and overlap are noted:

In conclusion, bears are mounting an attack out of the first major fifth wave inflection zone, and because of bear nest potential, will hold the advantage unless and until bulls can create a significant snap-back to overlap some of those waves to defuse their bearish potential energy.  At this point, our near-term focus now shifts to bearish, and thus awaiting next potential support zones and/or an impulsive rally wave before shifting back to bullish.  Trade safe.

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