Friday, August 25, 2023

SPX and COMPQ: Monday's Upside Inflection Target Captured

On Monday, I posted a "keep it simple" chart of SPX (and literally just now realized I uploaded another SPX chart where I was trying to upload NYA -- ah well, irrelevant) and discussed an option for SPX to rally back up to test a confluence that had caught my eye.  It did test that confluence, and was then strongly rejected:

COMPQ can also run into trouble if it sustains a breakdown below support and its recent low:

In conclusion, we can see that several major markets are implying the potential for big trouble on sustained breakdowns of support.  Now it's really just up to bears to make it happen.  And I suspect they ultimately will -- but as noted Monday, I do have to respect the potential inflection at the recent lows, which means that, despite my lean here, it's certainly not impossible for bulls to pull out a stick save and we should stay nimble accordingly.  Trade safe.

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