Wednesday, September 7, 2022

SPX Update: Bounce or Break Territory

Last update speculated that there was at least a chance bulls might put together a bounce, but also noted that the onus was on bulls to prove that with a sustained breakout over the black trend line.  There was no sustained breakout, and SPX dropped back down to prior near-term support:

This means it's unclear if SPX is intent on following the extended fifth path we've previously discussed, but if SPX were to sustain a breakdown of the noted levels, then that path would remain very much on the table:

In conclusion, SPX's intentions are unclear -- as I noted back on 9/2, the red trend line (first chart, 2nd annotation) was something of an inflection zone... and as of Tuesday's close, SPX is sitting right on that inflection zone.  So this is "bounce or break" territory, but if bulls can't get it together here, then a sustained break could take SPX down to the next noted zones.  Trade safe.

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