Friday, May 19, 2023

SPX, NYA, INDU: SPX Finally Does a Thing

Last two updates, I thought there was a chance SPX might head down to test the 4090ish zone again, but that didn't happen, with the market finally breaking a bit higher instead.  This is the first semi-real progress SPX has made in a while, and it does change the position of the potential blue 2?:

It's interesting to note how much NYA is lagging:

And how much INDU is lagging:

This lag suggests two diametrically opposed possibilities:  Either SPX only has a little more upside, and the rest of the market will drag it back down -- or SPX is headed toward at least Red 2 and that will drag the rest of the market up.  NYA may become particularly germane here -- IF it can break above the red c/3 high, as it would then need to go on to form 5 waves from the 15055 low.  Right now, because of the divergences across markets, it's a bit early to determine how significant SPX's breakout may or may not be, so how these markets collectively behave during the upcoming sessions will be important toward drawing firmer conclusions one way or the other about the larger time frames.   Trade safe.

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