Friday, July 1, 2022

SPX and BKX: Support Does Its Thing

Since last update, SPX declined down to the "structural support zone" I noted on the near-term chart, and found some support there:

BKX declined all the way down to retest its prior swing low, and since it overlapped the start of its more recent micro wave (spell check would like it noted that it believes "microwave" is one word, as in "NEVER put your pet goldfish in the microwave!"), the high at red (iv) is not as relevant anymore and would no longer indicate an impulsive rally.  

In conclusion, bulls managed a bounce at (the zone I had previously theorized might act as) support and have so far held above the tentative key overlap, so there's no real change from last update, and if bulls keep holding that zone, they can put together a larger bounce -- if support and the (tentative) key overlap fail, then bears might have the near-term ball.  I do want to note, in case it wasn't clear for anyone, that I remain long-term bearish regardless of what happens here.  Trade safe.  Oh, and happy Fourth of July to everyone.

No comments:

Post a Comment