Friday, September 2, 2022

SPX and TLT Update: Next Downside Zone Captured

Last update called out the 3900 zone on one chart and a rising trendline on another, both indicated as targets and potential support zones; time and price coincided on Thursday, as the 3900 zone and the trend line were both reached concurrently, leading to a bounce.

We can see on the chart below that the next hurdle for bulls is the falling black channel line:

On the short-term chart, I've sketched in a path, but that should be considered highly-speculative at this point, as if bulls fail to clear black (on the chart above), the decline could resume in full swing:

Interesting to note that TLT has reached a potential support area:

No change to the big picture:

In conclusion, last update's downside target/inflection zone was captured -- now it's up to bulls to prove they have enough firepower to generate a tradeable bounce.  If Thursday's low were to fail, then the falling blue trendline on the first chart would be on the table for the near-term.  Trade safe.

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