Friday, August 6, 2021

SPX Update

Not much to add since last update, which suggested we could see the current correction become more complex, and thus "more chop."  The "more chop" certainly seems about right for the sessions since.  Whether the current correction will grow complex still remains to be seen.  

Either way, back on July 30, I noted that the market was going to gap down and suggested that "complacency!" would probably be the right response (along with giving the 72 level as a meaningful zone) -- and SPX ended up bottoming at 73, while futures are suggesting a new ATH this morning, so seems "complacency" was where it's at.

Big picture, bulls would still like to see SPX stop getting rejected at the upper trendline:

In conclusion, "complacency" was a solid winner (you'll probably never hear me say that again!); beyond that, a more complex correction is still possible here, but again, we'll keep an eye on the upper black trendline (near-term chart) for clues -- if bulls sustain a breakout there, then the market could just keep running.  Trade safe.

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