Monday, June 6, 2022

SPX Update

SPX didn't do much on Friday, leaving two obvious near term options on the table:  Either Friday's decline was i/a down on a new larger wave (I'm very slightly leaning toward this) or it marked wave C of a running flat (a flat that fails to break below the prior A wave low):

The T2 inflection zone has proven itself a worthy adversary for the market, having so far rejected two attempts to clear it:

In conclusion, futures are indicating a gap up, but my very slight lean right now is that this will present a selling op.  If SPX clears 4178, then red C is (obviously) still unfolding, though it could be in a fifth wave in that event.  Short version:  Unless SPX clears 4178 on increasing momentum, bears may have a solid shot here.  Trade safe.

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