Friday, July 9, 2021

SPX Update: Market Tests Both Inflection Zones Inside of 24 Hours

Last update noted several inflection zones, on the upside and on the downside, and the market reacted to both.

The next upside inflection was 4367, and the market stalled just shy of that zone, then dropped literally straight down to the first downside inflection (shown by blue "Bull: 4?" on that day's chart), where the decline was arrested on a dime, and a decent bounce then ensued:

In conclusion, SPX is going to open smack in-between these two (correctly-identified) inflection zones, and the in-between is a sort of no-man's land.  If Bull 4 holds, then we're likely on to new ATHs.  If it breaks, then we'll probably drop at least 73 points vs. the prevailing high, possibly more.  We'll see if the rally up from bull 4 remains a three, or turns impulsive.  Trade safe.

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