Wednesday, February 2, 2022

SPX, NYA, COMPQ: 2-2 Twain

As those of you who own calendars are no doubt aware, today is 2/2/22, which is the only time in our lifetimes that the only digit needed to write the date will be "2" (except for 2/22/22, which is farther away than it seems) and there won't be any other dates like those until the next one (I'm too lazy to look up or calculate when that will be; I've got an update to complete!  Probably 3/3/33.).  2/2/22 is also a palindrome, for people whose favorite month is "22."  And it's the closest we'll come to riding the "too-too twain" (with a nod to the movie Murder by Death).

Anyway, there are a lot of charts to cover today, so we need to quit messing around here.

First up, the current bounce began in an area that made sense, and which we discussed repeatedly as "the zone bears need to beat" last week:

A similar look in COMPQ:

Near-term, SPX has a couple of trend lines that could act as next resistance:

On COMPQ, the zones are horizontal:

And finally, NYA continues to show the bull option:

In conclusion, SPX captured and exceed the 4525 target given in the last update, which is no surprise given the long-term support lines, and is now approaching its next potential resistance zones.  The big question is whether this is a fifth wave to wrap up the lingering question of whether the all-time high was a b-wave, or a true "bear market bounce" (i.e.- second/fourth wave).  COMPQ is one of the clearer markets to watch for a possible early answer to that question.  Trade safe.

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