Wednesday, February 16, 2022

SPX and COMPQ: What Bears Need

Since last update, SPX found support at 4364.  4364 is too high, at least for bears.  Because if that level were to hold and SPX were to rally back up north of its last swing high (4590), it would actually open up options that are bullish enough to make a new ATH.  Let's look at the charts, starting with COMPQ, which, like INDU, might have a b-wave high at its February high:


In conclusion, to keep things reasonable, bears would like to see a break of 4364 before the market even considers heading back above 4590; otherwise, it would leave options open for a bull nest.  Trade safe.

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